The Lufthansa Group has reported a nett profit of €1,4 billion (R27,7 billion) for the 2024 financial year, indicating a decrease of about 18%, compared with the €1,7 billion (R33,7 billion) nett profit achieved in 2023.
However, the group also recorded its strongest revenue in the company’s history, €37,6 billion (R745 billion), due to a new peak in load factor.
The Group generated an operating profit (Adjusted Earnings Before Interest and Tax) of €1,6 billion (R31,7 billion) and an operating margin of 4,4%, compared with 2023’s operating profit of €2,7 billion (R53,5 billion) and operating margin of 7,6%.
According to the Lufthansa Group, the decline was due to strikes, significantly higher costs and delayed aircraft deliveries, among other challenges.
The group's passenger airlines generated an operating profit of €1 billion (R19,8 billion) in 2024, compared with €2,0 billion (R39,6 billion) in 2023. While SWISS, Eurowings, Brussels Airlines and Austrian Airlines achieved operating profits that matched or exceeded their performances in 2023, Lufthansa Airlines is pursuing a turnaround programme to improve efficiency, reduce complexity and increase its product quality.
“The decline in the passenger airlines' operating profit is mainly due to the decline in Lufthansa Airlines' earnings by €948 million (R18,8 billion). Delayed deliveries of new aircraft forced Lufthansa Airlines to keep older 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,” said the Lufthansa Group report.
New peaks in load factor
In 2024, the Lufthansa Group airlines welcomed 131 million guests on board their aircraft, an increase of 7% over the previous year.
The passenger load factor rose to a record level of 83,1%, compared with 2023’s 82,9%. The group’s passenger airlines experienced a historic peak in load factor, reaching 88%, during the months of July and August.
“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 AG. “The trend was reversed in the course of the year with two consecutive quarters in which we generated revenue of over €10 billion each for the first time, and in the fourth quarter we exceeded the previous year's profit.”
Outlook for 2025
According to Till Streichert, Chief Financial Officer of Deutsche Lufthansa AG, the group is anticipating capacity growth of about 4% during 2025.
“This will help to support our revenue growth, secure valuable market shares, stabilise our earnings and further improve our operations. Nevertheless, current challenges will persist. These include delays in aircraft deliveries and ever-present cost pressures,” said Streichert. “We therefore regard 2025 as a transition year in which we will lay the foundations for future increases in profitability. Nevertheless, progress will be clearly visible in every respect. This will also be reflected in our Adjusted EBIT, which we expect to be significantly higher than in the previous year.”
