Deutsche Lufthansa AG reported an 8% increase in second-quarter revenue, but profit fell sharply as higher fuel costs and strike-related disruptions outweighed strong passenger demand.
Revenue rose to €11.1 billion in the quarter from €10.3 billion a year earlier. Adjusted EBIT declined to €383 million from €870 million, while the adjusted EBIT margin narrowed to 3.4% from 8.4%.
The airline group said fuel costs increased by about €750 million year over year, while strikes added at least €150 million in costs. Higher yields, particularly on Asian routes, where fares rose by more than 13%, partly offset the impact.
Net income fell to €123 million from €1.0 billion a year earlier, reflecting the weaker operating result, valuation effects and one-off tax benefits recorded in the prior-year period. Adjusted free cash flow was negative €365 million, compared with positive €138 million a year earlier.
Lufthansa’s network airlines reduced capacity by 3% during the quarter, mainly due to six strike days in April and the optimisation of short-haul operations. Despite the lower capacity, the load factor edged up to 81.6%, while unit revenue increased 6.4%, supported by strong premium and Asian travel demand.
Adjusted EBIT at the network airlines fell to €137 million from €627 million a year earlier. The decline included a €108 million reduction in equity income, primarily due to currency-related valuation effects on lease liabilities at ITA Airways.
