The airline group is weighed down with costs related to absorbing parts of bankrupt Air Berlin.
Lufthansa’s latest results have weighed down a buoyant German industrial sector in the country’s latest round of quarterly results, with a 6% fall in revenues.
The German airline’s revenue growth disappointed, according to the news agency Reuters, because of the expansion of its Eurowings budget unit.
As it absorbs parts of bankrupt Air Berlin, Eurowings’ adjusted operating loss for the seasonably low quarter grew to €201 million, up from €132 million in the same quarter last year.
The group admits that “one-off expenses will continue to burden unit cost trends at Eurowings in the months ahead.”
The group’s overall results are “far shy of expectations”, the Financial Times writes, as it “drastically missed analysts’ expectations”.
Revenues stood at €7.64 billion for the quarter, down from €7.69 billion year-on-year and some way below the average of analysts’ forecasts, €8.15 billion.
The group’s net loss was an improvement, however, at €57 million, better than last year’s €68 million. But adjusted profit was a long way off analysts’ forecast of €48 million, posting €26 million. Load factor, meanwhile, rose slightly to 77.8%.
Of the other airline in the group, Swiss is doing well with adjusted profits of €99 million. But losses at Austrian grew to €67 million.