Lufthansa profit falls as short haul continues to drag
Lufthansa said Tuesday that its Q2 net profit dropped sharply due to intense price competition on short-haul routes, and confirmed previous cuts to its 2019 guidance. Net profit at the carrier was E226m (US$251.8m) compared with E752m in the same period the year prior, while revenue rose 4% to E9.63b, the company said. Adjusted earnings before interest and taxes fell 25% to E754m. The company’s adjusted free cash flow came in at E91m. “Persistent overcapacities, aggressive competition and increasingly price-sensitive demand continue to pressure yields on the European routes of Network Airlines and Eurowings, particularly in the German and Austrian home markets,” Lufthansa said. Eurowings suffered substantial declines on short and medium-haul routes during the first half of the year, the company said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-07-31/star/lufthansa-profit-falls-as-short-haul-continues-to-drag
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Lufthansa profit falls as short haul continues to drag
Lufthansa said Tuesday that its Q2 net profit dropped sharply due to intense price competition on short-haul routes, and confirmed previous cuts to its 2019 guidance. Net profit at the carrier was E226m (US$251.8m) compared with E752m in the same period the year prior, while revenue rose 4% to E9.63b, the company said. Adjusted earnings before interest and taxes fell 25% to E754m. The company’s adjusted free cash flow came in at E91m. “Persistent overcapacities, aggressive competition and increasingly price-sensitive demand continue to pressure yields on the European routes of Network Airlines and Eurowings, particularly in the German and Austrian home markets,” Lufthansa said. Eurowings suffered substantial declines on short and medium-haul routes during the first half of the year, the company said. <br/>
