Lufthansa Group has reported an adjusted EBIT of EUR 686 million in the second quarter of 2024, down from EUR 1.1 billion in the same period last year. According to the company, a market-related decline in yields across all regions, particularly in Asia, had a significant negative impact.
The unit costs of the Group’s passenger airlines remained at the previous year’s level. Lufthansa Group’s adjusted free cash flow amounted to EUR 573 million.
Lufthansa Airlines, the group’s main airline, reported a quarterly profit of EUR 213 million, around EUR 300 million less than the previous year’s EUR 515 million. For the first half of the year, Lufthansa Airlines recorded a loss of EUR 427 million, compared to a profit of EUR 149 million in the same period last year.
The company highlights that Lufthansa Airlines has been particularly affected by the negative market trend and inefficiencies in the flight operations of Lufthansa and Cityline, also due to delayed aircraft deliveries. “It is becoming increasingly challenging for Lufthansa Airlines to break even for the full year,” the company stated. To counter this, a comprehensive turnaround program is being launched.
For the other passenger airlines as well as Lufthansa Technik and Lufthansa Cargo, earnings for the second half of the year are expected to be broadly at previous year’s level, in some cases higher.
For the full year 2024, Lufthansa Group now expects an adjusted EBIT in the range of EUR 1.4 to 1.8 billion, a revision from the previous forecast of around EUR 2.2 billion. This outlook is largely dependent on the earnings development at Lufthansa Airlines and the traditionally strong fourth quarter for Lufthansa Cargo.
Adjusted free cash flow is expected to be significantly below EUR 1 billion, down from the previous forecast of at least EUR 1 billion, due to uncertainties around capital expenditure development in the second half of the year.
The Group will provide further details on the financial outlook when it publishes its final results for the second quarter on July 31.
