BERLIN (Reuters) – Lufthansa expects third-quarter profit to fall as yields collapse and unit costs rise, the German airline said on Wednesday, amid stagnant demand and aircraft delivery problems.
The group recorded a net profit of 469 million euros for the period from April to June, a drop of almost half compared to last year.
In July, Lufthansa cut its profit target for the second time this year.
According to Carsten Spohr, Chairman of the Board of Management, capacity across the market has intensified pricing pressure for passenger airlines, leading to lower yields.
In the third quarter, Lufthansa expects yields to be down by a single-digit percentage compared to 2023 levels, while unit costs are expected to increase by a similar magnitude.
The airline expects its third-quarter operating profit (EBIT) to be below the previous year’s level of €1.5 billion, due to difficulties at Lufthansa Airlines, its core passenger business.
(Reporting by Rachel More and Joanna Plucinska, with contributions from Ilona Wissenbach; by Elena Smirnova, edited by Augustin Turpin)
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