Germany's Lufthansa cuts 2024 profit target for a second time

Deutsche Lufthansa slashed its 2024 earnings guidance for a second time and issued a profit warning for its second quarter on Friday as one of Europe's top airlines struggles with low returns and operations problems. The warning underscores worries about a weaker-than-expected quarter for airlines as they struggle with high labour and operating costs as well as weak average revenue per passenger due to pressure on ticket prices. Shares in Lufthansa fell as much as 3.8% and pulled lower British Airways-owner IAG by 2.7%, easyJet by almost 1% and Air France-KLM by nearly 2% at 1213 GMT. Lufthansa expects adjusted 2024 earnings before interest and taxes (EBIT) between E1.4b ($1.5b) and 1.8b, down from a previous target of about 2.2b. It said the group's second-quarter adjusted EBIT fell by more than a third to E686m. It reports second-quarter results on July 31. "A comprehensive turnaround program is being launched" affecting its Lufthansa brand and regional carrier Cityline, the company said, adding that its core brand was particularly hit by negative market trends "A market-related decline in yields in all traffic regions – especially in Asia – had a negative impact," it said. Lufthansa had issued a profit warning for its first quarter in April amid rising expenses tied to strike. It also cited "inefficiencies in the flight operations" of Lufthansa and Cityline, and delayed aircraft deliveries.<br/>