By Ludwig Burger
FRANKFURT (Reuters) -German airline group Deutsche Lufthansa on Friday slashed its earnings guidance for the year and said it would have a far-reaching efficiency programme, citing low yields in Asia and problems in operations at home.
Lufthansa now expects adjusted 2024 earnings before interest and taxes between 1.4 billion euros ($1.5 billion) and 1.8 billion, down from a previous target of about 2.2 billion, it said in a statement.
“A comprehensive turnaround program is being launched”, affecting its core Lufthansa brand and regional carrier Cityline, the company said.
It also reported that group second-quarter adjusted EBIT fell by more than a third to 686 million euros.
“A market-related decline in yields in all traffic regions – especially in Asia – had a negative impact,” the carrier said.
It said that its core Lufthansa brand was particularly hit by negative market trends.
There were also “inefficiencies in the flight operations” of Lufthansa and Cityline, and delayed aircraft deliveries to deal with, the group added.
($1 = 0.9184 euros)
(Reporting by Ludwig Burger, editing by Miranda Murray)
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