Lufthansa Group has published its financial results for 2024, describing the period as a “year of two halves” restrained by aircraft delivery delays.
There were many positives for Europe’s largest airline conglomerate to savor but clearly there is a feeling that more could have been achieved if events had unfolded in its favor.
“Looking back, 2024 was a year of two halves for the Lufthansa Group. In the first six months, we still had to cope with a significant decline in operating profit – due, among other things, to strikes, delayed aircraft deliveries and operational challenges at our hubs,” said Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa.
In 2024, Lufthansa Group increased its revenue by 6% year on year to €37.6 billion ($40.5 billion) from €35.4 billion ($38.2 billion) in 2023, due to the higher flight offering.
Lufthansa Group, which includes Austrian Airlines, Brussels Airlines, Swiss and Eurowings, said its operating profit fell from €2.7 billion ($2.9 billion) in 2023 to €1.6 billion (1.7 billion) in 2024.
Benvenuta and welcome to the Lufthansa Group family, ITA Airways.
We are thrilled to be taking off together to turn the sky more azzurro. We are celebrating becoming even more international, more diverse and having even more choice for our travelers. ✈️
There’s more to come. pic.twitter.com/tulas5tl2J
— Lufthansa (@lufthansa) January 17, 2025
During the first six months Lufthansa Group said it had to weather strikes and “absorb a significant decline in average yields at the beginning of the summer due to the large industry-wide increase in capacity”.
Significantly higher costs, especially in Germany, had a negative impact and flight operations also suffered from further delays in aircraft deliveries, according to the company.
“The trend was reversed in the course of the year with two consecutive quarters in which we generated revenue of over 10 billion euros each for the first time, and in the fourth quarter we exceeded the previous year’s profit,” Spohr explained.
The passenger load factor rose to a record level of 83.1% in 2024 against 82.9% in 2023 thanks to 131 million people travelling with the group’s airlines.
“In terms of the passenger load factor, the summer months of July and August were not only the strongest months of last year, with a load factor of almost 88 percent, but also among the strongest in the company’s history,” Lufthansa Group said.
‘Among the strongest in the company’s history’
Overall, the group’s passenger airlines generated Adjusted EBIT of €1 billion ($1.07 billion) in 2024 against €2 billion ($2.1 billion) in 2023.
Lufthansa Group explained that the decline in the passenger airlines’ operating profit is mainly due to the decline in Lufthansa Airlines’ earnings by €948 million ($1 billion).
“Delayed deliveries of new aircraft forced Lufthansa Airlines to keep aircraft in service for longer, which, together with higher location and personnel costs and increased expenses for compensation for flight irregularities, weighed disproportionately on earnings,” Lufthansa Group said.
Looking to 2025, Lufthansa Group expects demand for air travel to remain high and says it will take delivery of a new aircraft every two weeks during the current year.
The company expects Adjusted EBIT in the 2025 financial year to be significantly higher than in the previous year with net capital expenditure of between €2.7 billion ($2.9 billion) and €3.3 billion ($3.5 billion).
“The further internationalization of the Lufthansa Group through the integration of ITA Airways, the significantly improved stability in flight operations and the growing satisfaction of our customers – all this shows that our strategy is right and our measures are taking effect. However, there is no question that we now also have to achieve an economic turnaround for our core brand Lufthansa,” Spohr said.
He added: “This year, 2025, will be a year of transformation for us with a clear goal: to further strengthen our position as the global number one outside the United States.”
