Fewer ticketing-less - Lufthansa cuts profit forecast
Profit decline at Lufthansa: Due to decreased ticketless sales, particularly in Asia, the company has withdrawn its annual forecast. In the second quarter, the core company Lufthansa generated only 213 million Euro profit compared to 515 million Euro in the previous fiscal year, as the company announced in Frankfurt.
After half a year, the largest corporate airline now has a loss of 427 million Euro in the books. In the first half of the previous year, it was still 149 million Euro profit. The reasons given were decreasing ticketless sales, inefficiencies, and the delayed delivery of new aircraft. The other passenger airlines within the group as well as Lufthansa Technik and Lufthansa Cargo are expected to achieve results in line with the previous year.
Target adjusted
The company now only expects an operational profit of between 1.4 and 1.8 billion Euro for the entire year, down from the previously targeted 2.2 billion Euro. In the second quarter, the operational profit amounted to only 686 million Euro compared to 1.1 billion Euro in the previous fiscal year.
The outlook depends significantly on the performance of Lufthansa Airlines and the traditionally important fourth quarter at the cargo subsidiary Lufthansa Cargo. A cost-cutting program has been initiated at the core brand Lufthansa. Reaching the profit threshold is "increasingly challenging".
Statement Lufthansa
- The revenue decline in Lufthansa Cargo, a subsidiary of Lufthansa, has been partly attributed to reduced air traffic in Asia.
- In contrast to the core company Lufthansa, other passenger airlines within the group and Lufthansa Cargo are projected to maintain their revenue levels as seen in the previous year, despite the quarterly numbers showing a decline at Lufthansa.
- The quarterly numbers for Lufthansa in Frankfurt am Main, Germany, reveal a significant revenue decline, with Lufthansa generating only 213 million Euro profit in the second quarter compared to 515 million Euro a year prior.
- Despite facing challenges in Frankfurt am Main, Lufthansa Cargo, with its operations primarily based in Frankfurt, remains crucial for the company's profitability, especially during the traditionally important fourth quarter.
