Lufthansa's 2Q profit falls on weaker revenues

After reporting 1Q results that were modestly better than last year before one-off costs, Lufthansa Group's 2Q2014 results show a deterioration in its underlying profits. Weaker revenues, especially in Asia Pacific and on the North Atlantic and in the cargo segment, and the effect of strikes and the Venezuelan currency devaluation weighed on the 2Q figures.

These factors were flagged by the company last month when it lowered its 2014 and 2015 operating profit targets and the reduced targets are unchanged. The group has reiterated its previous unit cost reduction target and so the lower profit outlook is entirely due to the revenue environment.