However, the company pointed out that its operating profit, or adjusted earnings before interest and taxes (EBIT), decreased from €2.7 billion ($2.9 billion) to €1.6 billion ($1.7 billion) due to various factors including numerous strikes during the first half of \u20602024.
The strike-related impact was estimated at €450 million ($485.9 million), primarily affecting the group’s passenger airlines. Additionally, there was a significant decline in average yields at the beginning of summer due to an industry-wide capacity increase.
“Significantly higher costs, especially in Germany, also had a negative impact,” said Carsten Spohr, Chairman of the Executive Board and Chief Executive Officer (CEO) of Lufthansa Group. “Productivity in flight operations also suffered from further delays in aircraft deliveries.”
At the same time, lower interest rates enabled Lufthansa Group to protect its profits somewhat, with net profit decreasing by only around €300 million ($323.8 million), resulting in a net profit of €1.4 billion ($1.5 billion) for \u20602024.
Carsten Spohr reflected on the year saying that aviation remains an industry with strong demand for air travel even during unstable times as it enables “international understanding through cultural and economic exchange.” He added that \u2060Lufthansa\u2060 is looking back on its strongest year terms revenue and record- high load factor.
“Looking back,” Spohr said “2024 was a year two halves for \u2060Lufthansa\u2060 . In first six months we still had cope significant decline operating profit – among other things strikes delayed aircraft deliveries operational challenges our hubs ”
During second half year revenues climbed over consecutive quarters managed grow Q4 compared same quarter
Spohr concluded integration ITA Airways improvement flight operations growing customer satisfaction showed strategy correct measures positively affected results This will transformation clear goal further strengthen position global outside United States
The turnaround program initiated eight months ago focused operational stability First months improved performance Establishing City Airlines proved decision enabling operate short haul flights efficiently cost effectively program achieve gross effect around EBIT approximately
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