Lufthansa reduced its net profit by almost half in the second quarter
Lufthansa cut its net profit by almost half in the second quarter compared to the previous year. The profit amounted to 469 million euros, a 47 percent decrease from the previous year, as Europe's largest airline announced on Wednesday. Lufthansa cited falling ticket prices and the impact of strikes at the beginning of the year as the reasons.
Lufthansa's revenue increased by seven percent to 10 billion euros compared to the second quarter of 2023, according to the company's statement. "This was due to a significant increase in our flight capacity," explained Chief Financial Officer Michael Niggemann. The company expects a "good travel summer." Overall, bookings are more than 10 percent higher than the previous year. However, the load factor was slightly lower than the previous year at 82 percent.
Ticket prices had risen sharply during the corona pandemic, but have since normalized, according to Lufthansa. Strikes also had a negative impact on the company's results, with 100 million euros in losses, as Lufthansa announced. "In addition, disproportionately increased location costs in Germany and new collective bargaining agreements for cockpit, cabin, and ground staff are burdening the result," the company explained.
Lufthansa has lowered its forecast for the operating result of the current year to 1.4 to 1.8 billion euros. It had previously expected 2.2 billion euros.
The decrease in Lufthansa's net profit was observed on a quarterly basis, with a 47% drop compared to the same period the previous year. Despite these challenges, Lufthansa anticipates a successful summer travel season based on an 11% increase in bookings.
