Lufthansa, weak quarter due to falling demand in the US market
July-September net profit down 12% with 41 million passengers carried. 2025 targets confirmed
by Mara Monti
A weak quarter for Lufthansa, which in the period between July and September reported a 12 per cent drop in net profit to EUR 966 million and an operating profit of EUR 1.3 billion (-8 per cent) in line with analysts' expectations. Turnover rose 4 per cent to EUR 11.2 billion with 41.7 million passengers carried. In the nine months, net profit rose 32 per cent to EUR 1.093 billion and operating profit by 17 per cent.
Weighing on the summer quarter, the most important for the air transport sector, was the drop in demand in the US market in particular and geopolitical tensions. However, the group compensated for the weakness in demand to the US with the still strong South American market and bookings in premium class.
The group has just unveiled an ambitious recovery plan to reduce costs and centralise operations in its complex multi-hub structure. The group also struggled to reach an agreement with the trade unions to avoid a potential strike.
However, Lufthansa confirmed its 2025 forecast for operating profit, which is expected to significantly exceed last year's result of EUR 1.6 billion.
'Although we must continue to work hard on the revitalisation of our core business and the efficiency of our airlines, today we can confirm our forecast of a significant improvement in earnings in 2025,' CEO Carsten Spohr said in a statement.
