Lufthansa Group experienced a challenging third quarter of 2024, despite a strong summer travel season. Revenue increased by 5% year-over-year to €10.7 billion, making it the strongest quarter in the company’s history. However, adjusted EBIT fell by 9% to €1.34 billion, with a drop in the EBIT margin from 14.3% to 12.5%, mainly due to increased costs and delayed aircraft deliveries.
Net income also declined, falling 8% to €1.095 billion, while earnings per share were down to €0.92. The company reported a significant reduction in adjusted free cash flow, dropping 78% year-over-year to €128 million in Q3, driven by higher operational costs.
Lufthansa’s flagship brand struggled with rising costs and decreased yields in the Asia-Pacific market, despite continued high demand in the premium segment. Lufthansa’s CEO, Carsten Spohr, acknowledged the challenges, including delays in aircraft deliveries and regulatory disadvantages, and confirmed the group’s commitment to a turnaround plan aimed at reducing costs and increasing efficiency.
Looking forward, Lufthansa maintains its full-year outlook for an adjusted EBIT between €1.4 and €1.8 billion, despite issuing two profit warnings earlier this year. The company plans to focus on fleet modernization and operational improvements to regain profitability by 2026.
Edited: Katerina Urbanova
Source: Lufthansa Group
Photo credit: Lufthansa Group
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