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Lufthansa loses money in H1, stands by outlook

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August 2, 2013 05:00 AM EST | AP

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FRANKFURT, Germany — German airline Lufthansa AG recorded a net loss of 204 million euros ($270.01 million) in the first six months of the year as restructuring costs, fuel prices and slower business in Asia and the Middle East sapped earnings.

The company made a profit of 50 million euros in the year-ago period.

Nonetheless, Lufthansa said it was working to restructure and control costs and that it expected to meet its profit goal for the year.

Lufthansa shares fell 3.9 percent to 14.86 euros in morning trading in Europe.

Total revenue slipped 0.3 percent to 14.46 billion euros. The number of passengers fell 0.4 percent to 49.5 million but the number of flights fell by 5.1 percent as the company made more efficient use of capacity. Fuel prices rose 1.3 percent after hedging measures the company uses to shield itself from price swings.

"The restructuring of the Lufthansa Group is gaining speed", chief financial officer Simone Menne said in a company statement.

Lufthansa has struggled with competition from low-fare airlines within European and from Middle Eastern carriers on long-haul routes.

For the second quarter, net profit fell 43 percent to 255 million euros as the company endured strike action from its employees. Revenue fell 0.7 percent to 7.83 billion euros.