FRANKFURT, Aug. 4 (Xinhua) -- German airline group Lufthansa said on Tuesday its adjusted operating profit fell 56 percent year on year in the second quarter, as higher fuel costs and strike-related disruptions outweighed strong travel demand.
Adjusted earnings before interest and taxes (EBIT) dropped to 383 million euros (about 441.65 million U.S. dollars) from 870 million euros (1 billion dollars) a year earlier. Net income tumbled 88 percent to 123 million euros (141.84 million dollars), while the adjusted EBIT margin narrowed to 3.4 percent from 8.4 percent, according to the group.
The German airline group said fuel costs were about 750 million euros (864.85 million dollars) higher than a year earlier, while strikes caused losses of at least 150 million euros (172.97 million dollars). Six days of strike in April also reduced passenger capacity.
Lufthansa CEO Carsten Spohr described the quarter as "challenging," saying it had again been marked by "multiple geopolitical crises and uncertainties."
He said higher jet fuel prices and temporary route cancellations had weighed on the group's operating and financial performance. Revenue growth, however, was supported by strong demand, disciplined pricing, fleet and product renewal, and improved operational efficiency.
The group's second-quarter revenue rose 8 percent year on year to 11.1 billion euros (12.8 billion dollars), from 10.3 billion euros (11.88 billion dollars) a year earlier.
The results come as higher fuel prices and disruptions linked to conflict in the Middle East weigh on European airlines. Air France-KLM, Ryanair and easyJet also reported declines in quarterly profit.
