Lufthansa Group believes it will be able to use the momentum created in the second half of 2024 to achieve stronger financial returns in 2025.
European airline groups have assessed it, especially as they outlined the weakness in full-year profits in 2024, especially after the first six months were affected by a series of challenges. At the same time, the business is working through the “best strategic priorities” of turning property around with its German business, Lufthansa Airlines.
“Looking back, 2024 was half the year for Lufthansa Group,” said Chief Executive Carsten Spohr as full-year revenues were announced on March 6th. “For the first six months, we still had to deal with a significant drop in operating profit, particularly struggling, aircraft delivery, operational challenges, delayed operational challenges.”
The group also points out a “severe reduction in yields” as more capacity returned to the market in the early summer of 2024.
“This trend has reversed throughout the year, generating revenues of more than 10 billion euros for the first time in the second consecutive quarter, surpassing previous year's profits in the fourth quarter,” added Spohr.
Despite the strong end of the year, year-round adjusted EBITs from Luftanza passenger carriers fell halved to 1 billion euros ($1.08 billion) in 2024.
Luftanza Airlines' turnaround began eight months ago and aims to “Improve efficiency, reduce complexity, improve product quality – ensuring the long-term competitiveness of the airline.
Other airline units in the group were profitable in 2024, with Switzerland making 81 million euros to its adjusted EBIT, followed by Eurowings (203 million euros), Austrian Airlines (76 million euros) and Brussels Airlines (60 million euros).
Lufthansa Group's logistics (EUR 251 million) and MRO (EUR 635 million) units both improved their positive contributions to the annual adjusted EBIT.
Overall, the group rose revenue by 6% in 2024 to 37.6 billion euros due to capacity expansion, but adjusted EBIT fell from 2.7 billion euros in 2023. Net income fell to 1.4 billion euros.
The group says it expects passenger capacity to rise by 4% and its adjusted EBIT in 2025 will be “significantly higher” year by year.
