Lufthansa GroupGerman aviation giant Airbus posted a year-on-year decline in operating profit in the third quarter, as its flagship brand struggles performance not at the top, the competition of international airlines and the increase in Costs.operating profit in the third quarter was equal to 1,3 billion euros, largely in line with the estimates of the analysts interviewed by the company, but lower than 9% rcompared to a year ago.
Typically, the third quarter, which includes the busiest summer months for travelers, is the busiest period for European airlines. However, rising costs, the unpredictability related to the crisis in the Middle East and delays in aircraft delivery continue to weigh on results. “Delays in aircraft deliveries, punctuality issues at our hubs in Germany and regulatory disadvantages are impacting our core brand,” said the CEO. Carsten Spohr in a press release. Analysts had already expected this figure after the second profit warning of the year in the summer. At the same time, the group reached the turnover quarterly revenue in the company's history, amounting to €10,7 billion, an increase of 5%. "Today, we are reporting another strong summer travel season, with a record load factor of 88% in August," Spohr said.
All passenger companies in profit
All passenger airlines, Eurowings, Austrian Airlines and Brussels Airlines, operated profitably and also showed record results in the third quarter, the CEO said, adding that Lufthansa Technik and Lufthansa Cargo also remained on track. The airlines passenger of Lufthansa have generated a operating profit of 1,2 billion euros in the third quarter, down from 1,4 billion in the same period of 2023. The decline was mainly due to a decrease of 234 million euros in the result of Lufthansa Airlines, the company said. In particular, the airline has repeatedly complained about the difficulty of competing with Chinese carriers still able to fly over the Russian airspace, pushing Lufthansa to suspend the Frankfurt-Beijing route.
With the “Turnaround” plan, gross Ebit at 1,5 billion by 2026
Global demand remains intact and so do the bookings for the fourth quarter are at a high level compared to the previous year, especially in the premium classes”. Lufthansa Airlines has launched the “Turnaround” to address global and internal structural challenges”. For Lufthansa Airlines, the goal is to increase efficiency, reduce complexity and improve the quality of the product, thus making the airline fit for the future. Among other things, the Turnaround plan includes shifting more short-haul traffic to more cost-effective flight operations. Further efficiency gains will be achieved by optimising the network and increasing flexibility and automation. Within the 2026, the measures will have a Ebit effect gross of approximately 1,5 billion euros. Lufthansa has received the green light from the European Commission for the purchase of Eng.
