Lufthansa reports net profit drop in second quarter

31st July 2014, Comments 0 comments

German airline Lufthansa said on Thursday its second-quarter net profit fell year-on-year due to pilots strikes, excess capacity on transatlantic and other routes and adverse currency effects.

From April to June, Lufthansa Group posted a net profit of 173 million euros ($231 million), down 32 percent from a year earlier -- far below the 243 million euros expected by analysts polled by Dow Jones Newswires.

Turnover at the German flag carrier fell two percent to 7.7 billion euros, while operating profit dropped 16.9 percent to 359 million euros.

"We are not satisfied with these figures," chief financial officer Simone Menne said during a media teleconference.

The airline blamed pilot strikes in April and the devaluation of the Venezuelan bolivar for the lower second-quarter results.

"Overcapacities -- especially on North and South American services, on European routes and, more recently, on Asia-Pacific routes -- prompted price declines in both the passenger and the cargo segment," it added.

Lufthansa Group, which includes Swiss and Austrian Airlines, however kept its outlook for the year of one billion operating profit.

"For the full year 2014, we are confirming our profit guidance, despite the unusual adverse developments in the second quarter," the airline said.

© 2014 AFP

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