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Image: Lufthansa Group

Lufthansa profit falls, group remains “confident”

Strikes, the weather and a “stressful” period at Eurowings weigh down the group’s latest quarterly results.

Lufthansa Group’s second-quarter net profit fell slightly to €734 million, weighed down by a period hit by strikes, the weather and other airspace disruptions. But it continues to support its guidance for this year.

The net profit figure compares with €740 million for the same period the year before, on the back of revenues that increased by 0.4% to €9.3 billion, MarketWatch reports.

Adjusted earnings before interest, taxes, depreciation and amortization fell 3.4% to €982 million, but this was ahead of estimates of €972 million.

The German carrier says it expects unit revenue to rise slightly during the year, while unit costs – excluding currency factors and fuel – should decline by around 1%.

Fuel costs are expected to be €850 million higher than in 2017.

“With continuing strong demand, we are confident that, despite a challenging prior-year basis for comparison, we will be able to report solid revenue trends for the second half of 2018 too,” said Ulrik Svensson, chief finance officer.

Stressful at Eurowings
Despite the fall in net profit, the figures beat analysts’ estimates particularly as unit costs continued to decline, the Financial Times reports.

“Passenger numbers, the number of flights and the passenger load factor all hit new highs,” said the group, whose brands include Austrian, Swiss, Brussels Airlines and budget carrier Eurowings.

The first half of 2018 was “a very busy and stressful first half-year for Eurowings”, the group admits. As absorbing part of Air Berlin continued, “we very much regret that the resulting irregularities such as delays and cancellations led to inconvenience for many of our passengers.”

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