Lufthansa struggles in difficult second quarter

Lufthansa struggles in difficult second quarter

Lufthansa has reported lower than expected second-quarter profit as ticket prices continued to fall on North American, Asian and European routes.

German flag-carrier Lufthansa also saw strike action weigh on results.

Lufthansa’s second-quarter operating profit was €359 million, below analyst expectations for €416 million, according to a poll from Reuters.

In the first half, strikes wiped off €60 million from profit in its core passenger airlines business.

“This quarterly performance was shaped by a number of one-off effects, such as strikes and currency devaluations.

“At the same time we have presented a comprehensive work programme with quality, growth and innovation initiatives, which we will drive forward with great determination,” said Simone Menne, chief officer finance and aviation services of Deutsche Lufthansa AG.

“The goals already announced in this regard, Menne continues, include raising the contribution to overall revenues from new businesses, new platforms and the group’s service business segments from the present 30 per cent to 40 per cent between now and 2020.”

Europe’s largest airline by revenue also took a provision for its Austrian Airlines unit after the European Court of Justice in June advised judges to rule that old Austrian Airlines collective wage agreements, which Lufthansa wants to cancel, are valid until a new one is agreed.