Frankfurt — German aviation giant Lufthansa Group reported a significantly lower profit in the second quarter compared to the previous year.
The company attributed this decline to strike costs of around €100 million ($108 million) and decreasing average ticket prices.
Lufthansa said prices are facing pressure, particularly in the Asian market, due to the increased capacities of Chinese airlines.
As a result of decreased revenues, Lufthansa had already adjusted its winter flight schedule starting from the end of October.
Lufthansa Group reported a net profit of €469 million for the second quarter of 2023, compared to €881 million in the previous year.
The company's quarterly revenue increased by 7% to €10 billion.
The flight offering grew by 11% year-on-year, while the passenger companies were only able to increase their revenues by 4.5%.
The MDax-listed company said its core brand Lufthansa faced a loss of €427 million in the first six months of the year, much lower than the same period last year, during which it reported a profit of €149 million.
A savings programme has been launched at the core Lufthansa brand.
The maintenance subsidiary, Lufthansa Technik, experienced record-breaking business.
The company also anticipates that other airlines within the group, such as SWISS, Austrian, Brussels, and Eurowings, will achieve profits at or above the previous year's levels.
The group had previously said that they are expecting an operating profit of between €1.4 billion and €1.8 billion for the entire year, as opposed to the previous target of around €2.2 billion.
During the second quarter, the operating profit was €686 million, down from €1.1 billion during the same period last year.
©2024 dpa GmbH. Distributed by Tribune Content Agency, LLC.
