Lufthansa 'gaining speed' despite €204 million loss

FRANKFURT, Germany (AP) - German airline Lufthansa recorded a net loss of €204 million ($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 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.

Total revenue slipped 0.3% to €14.46 billion. The number of passengers fell 0.4% to 49.5 million but the number of flights fell by 5.1% as the company made more efficient use of capacity. Fuel prices rose 1.3% 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% to €255 million as the company endured strike action from its employees. Revenue fell 0.7% to €7.83 billion.