Lufthansa Eyes No-Frills Long Haul in New CEO's Revamp
The German airline posted a drop of €82m in net profit.

German airline Lufthansa posted a profit that fell well short of expectations, prompting its CFO to tell journalists that the company is "not happy with the second quarter" and sending its shares down.

The airline's net profit dropped from €255m (£202m, $341m) to €173m compared with the same quarter last year, with revenue declining by 2% to €7.7bn.

Shares dipped by almost 6% in early morning trading to €13.49.

The airline said it had been hit hard by strikes in the first months of this year and also faced an increasingly difficult demand situation.

"Within a few weeks, the average yields contracted so sharply that in June, we had to respond to this adverse trend by lowering our forecast," Lufthansa said in a statement.

The carrier said that its new outlook for the year was now €1bn in operating profit, down by €1.3bn.

Reacting to the results, chief financial officer Simon Menne said: "We are not happy with the second quarter ... We have a lot of catching up to do in the summer."