Lufthansa Group has reported a second quarter 2024 net profit of €469 million or €0.39 per diluted share on a 7.0 percent year-over-year increase in revenue to €10.0 billion.
On Wednesday (July 31, 2024), Lufthansa Group reported their second quarter financial results for the period ending June 30, 2024. The Group reported a second quarter adjusted EBIT of €686 million and a net profit of €469 million or €0.39 per share on a 7.0 percent year-over-year increase in revenue to €10.0 billion. The company’s second quarter revenue per available seat kilometer (RASK) was down 5.3 percent versus the same period last year on a currency-adjusted basis, while cost per available seat kilometer, excluding fuel, (CASK-ex) was flat versus Q2 2023. Compared to the end of 2023, the Group’s total available liquidity at the end of the second quarter increased €200 million to €10.6 billion, while net debt decreased €100 million to €5.6 billion.
In Wednesday’s announcement, Deutsche Lufthansa AG’s Chairman and CEO, Carsten Spohr, said,
“Flying has lost none of its fascination – global demand for air travel remains strong. As a result, we exceeded the 10 billion euros turnover mark for the first time in the second quarter. However, due to the increase in available seat capacity, the normalization of air fares and average yields continued in all markets worldwide in the first half of the year. In view of the simultaneous rise in costs, profit expectations had to be adjusted across the industry – and also for us.
“Our most important airline, Lufthansa, was particularly affected in the first half of the year. This is because, in addition to the effects of market developments, there were special effects such as the high strike costs, further delays in aircraft deliveries and the resulting inefficiencies, as well as structural problems of the airline. We therefore want to accelerate the overall modernization of Lufthansa Airlines with a turnaround program in order to make it the Group’s flagship again.
“It is particularly pleasing that in the current challenging environment all the other passenger airlines in the Group, as well as Lufthansa Cargo, remain on course in line with market developments. Lufthansa Technik even posted another record result in the first half of the year.
“Strategically, we have made decisive progress with four relevant projects: the introduction of our new intercontinental product ‘Allegris’, the launch of Lufthansa City Airlines, today’s sale of AirPlus and the approval of our stake in ITA Airways by the EU Commission. These optimizations of our business model will help us to strengthen our position as number one in Europe.”
Also commenting on the Group’s Second Quarter results, Deutsche Lufthansa AG’s Chief Financial officer, Michael Niggemann, said,
“Our revenue rose to over 10 billion euros in the second-quarter period. This was due to a significant increase in capacity at our airlines. This growth was accompanied, however, by a market-related decline in ticket prices. In addition, our higher production levels and cost inflation led to an increase in our operating costs. So, despite achieving an operating result of 686 million euros, we earned significantly less in April to June 2024 than we had in the same period last year. In addition to market developments and structural challenges, our largest airline Lufthansa was also affected by special effects. Strike effects also had a negative impact in the second-quarter period. Furthermore, delays in aircraft deliveries in particular led to inefficiencies and additional costs. Nevertheless, we expect to report a clearly positive annual result for the Lufthansa Group, not least in view of the measures we have introduced to safeguard our earnings. Excluding the strike effects, we are convinced that we will achieve stable unit cost development for the year as a whole.”
Lufthansa Technik’s Q2 2024 revenue increased 18 percent compared to the same period last year to €1.9 billion, while Lufthansa Cargo’s results were in line with Q2 2023. Under Lufthansa Technik’s ‘Ambition 2030’ program, the division is planning extensive investments in expanding its core business and extending its locations in Europe, the Americas and Asia. For example, an additional MRO site for engines and aircraft components might be established in Portugal or another location in Southwest Europe.
As part of Lufthansa Airlines’ comprehensive turnaround program, the carrier will reduce their long-haul fleet to six aircraft types by decommissioning the Airbus A340-300, A340-600, A330-200 and Boeing 747-400 sub-fleets by 2028. At the beginning of May, the Group introduced the new ‘Lufthansa Allegris’ long-haul cabin, enhancing the premium product offer for Lufthansa guests. In June, the Group launched Lufthansa City Airlines, which will enhance the Lufthansa long-haul network in Frankfurt and Munich by providing competitive feeder and de-feeder flights. Additionally, the European Commission’s competition authority approved the Group’s planned acquisition of ITA Airways at the beginning of July 2024.
Second quarter 2024 financial results for select individual Lufthansa Group airlines are available here: Austrian Airlines, Brussels Airlines, SWISS.
Source: Lufthansa Group
To our valued readers: As we prepare to celebrate our fifth anniversary on September 2, 2024, we have decided to enhance our visitor experience by eliminating targeted ads across our platform. In order to make up for lost revenue, we are transitioning to a reader supported model, without a paywall, annoying pop-ups, or a required subscription. We thank you for your generous support!