Revenues and operating profits fall in second quarter
Lufthansa saw its second-quarter operating profits tumble by 27%, to €431 million, and revenues were lower than expected. It blamed rising staff costs and weak demand. Quarterly revenue was largely flat at €7.84 billion.
However, it said that sales would this year rise and promised that operating profit would be higher than last year’s €524 million. Lufthansa is in the middle of deep restructuring that includes 3,500 job cuts.
Together with the release of its results, Lufthansa said markets in Asia remained especially challenging with no signs of recovery. Reuters said this indicated the airline may be forced into further measures to respond to the tough conditions.
“Asia is a particular concern,” Simone Menne, the airline’s chief financial officer, told reporters. She explained that half of the reduction in yields in the key market of Japan was due to the weak yen. “It remained tough in the second quarter,” Menne continued. “We didn’t see any recovery in the economies based on forward bookings.”
Also competitors in Asia are behaving in a “more aggressive” manner, she said. “We obviously have to look at our Asia growth and see what we are doing there.”
[pictured: Airbus A330-300; courtesy Lufthansa]