Lufthansa has reported a second-quarter operating profit of €359 million, far below analysts’ expectations of €416 million.
The airline cites a fall in ticket prices on North American, Asian and European routes as the reason for the decline.
After the announcement, Lufthansa CFO Simone Menne said: "We are not happy with the second quarter; we have a lot of catching up to do in the summer.”
The airline continues to forecast a full-year operating profit of around €1bn, and 2015 profit of €2bn.
Lufthansa also said yields were down 2.6%, adjusted for currency effects in the quarter, extending yield declines of 1% in each of the previous two quarters.
Lufthansa CEO Carsten Spohr has said the airline will now only increase the amounts of seats it offers this winter by 2% instead of a planned 4%.
The report follows on from the profit warning that Lufthansa issued last month.