Frankfurt (Germany) (AFP) – German airline group Lufthansa on Tuesday reported an eight percent drop in profits in July to September compared with the same period last year, blaming increased operating and staff costs. The group, whose brands also include Austrian Airlines, Brussels Airlines, SWISS, and Eurowings, posted a net profit of 1.1 billion euros ($1.2 billion) for the third quarter.
Lufthansa said it remained committed to its “turnaround” cost-cutting programme that it hopes will generate 1.5 billion euros in savings by 2026. The subdued results contrast with a 47 percent jump in profits reported by Lufthansa in the same quarter in 2023 as it rebounded from the effects of the coronavirus pandemic.
Increased sales in the third quarter, however, led to revenues of 10.7 billion euros, the “strongest revenue quarter in the company’s history,” Lufthansa said in a statement. Some 40 million passengers travelled with the airline in July to September, an increase of six percent compared with 2023.
However, the group said high operating costs as well as “increased location costs, higher staff costs and expenses for compensation payments following flight irregularities” had weighed on its bottom line. Lufthansa ground staff won a 12.5 percent pay rise at the end of March after a series of strikes.
The group’s savings programme aims to “increase efficiency, reduce complexity and improve product quality,” in part by focusing on more profitable long-haul flights, Lufthansa said. Overall, the group confirmed its target of achieving an operating profit of 1.4 to 1.8 billion euros for the full year.
© 2024 AFP
