Lufthansa closed 2024 with over 37,5 billion euros in revenues (+6%), but with a decrease ofNet income (-18%) equal to 1,38 billion compared to 1,673 billion euros of the previous year. This decline was influenced by several factors: the reduction in ticket prices, the increase of operating costs (especially in Germany), the frequent strikes which had an impact of 450 million euros, delays in the deliveries of aircraft and the growing competition by airlines in the Middle East and Asia. This was announced by the German airline giant, which controls Lufthansa, Swiss, Austrian Airlines, Brussels Airlines, Eurowings/Discover, Air Dolomiti and, since January, has held 41% of Ita Airways.
Things improved significantly in the second two quarters of 2024, with a remarkable performance in July and August. In fact, during the summer, average flight occupancy reached 88%, with strong demand pushing revenues from July to December above 20 billion euros. Thanks to these results, Lufthansa expects to achieve “much better” earnings in 2025, with the ambition of adding an aircraft to the fleet every two weeks.
In Frankfurt the title Lufthansa opens sharply higher (over 4%). At 9:12 the shares are up 6,79% to 7,7 euros per share.
Lufthansa's numbers
In 2024, Lufthansa carried 131,3 million passengers, with an increase of 7% compared to the previous year, and operated over 991 thousand flights, maintaining an average aircraft load factor of 83,1%. Despite the turnover having reached 38 billion euros (+6%), operating costs increased even more (+8,7%), reducing theAdjusted Ebit to 1,645 billion euros, with a contraction of 38,7%. TheEBIT stopped at 1,73 billion (-35,2%).
The board of directors of the German company will propose a dividend of 0,30 euros per share at the meeting of 6 May 2025, maintaining the same amount as last year.
Performance of individual divisions
Among the various vectors, Swiss confirmed itself as the most profitable company in the group. The carriers generated a total adjusted EBIT of 1,05 billion euros in 2024, a 50% decrease compared to the previous year. The decrease in operating profits was mainly due to the loss of 948 million euros by Lufthansa Airlines. Despite this, Swiss maintained results similar to the record ones of 2023 (801 million). Good news also from Eurowings, which recorded 203 million euros of adjusted EBIT, and from Austrian Airlines (+76 million) e Brussels Airlines (+59 million).
Expansion with Ita Airways
Another good news comes from the entry into the Group of Italy Airways. This acquisition is part of the expansion plan of the multi-hub, multi-company and multi-brand model, with the aim of strengthening Lufthansa's position, taking advantage of the domestic market of Ita and its hub in Rome Fiumicino. The integration of Ita will be completed in 18 months, explains a note, bringing the group's fleet to 830 aircraft and increasing the number of employees by 5.000 units.
CEO's comment and outlook for 2025
Carsten Spohr, CEO of Lufthansa, commented on the result with a two-phase view: “In the first six months, we had to deal with a significant decline in operating profit, due among other things to strikes, delays in aircraft deliveries and operational challenges at our hubs. Over the course of the year, however, the trend reversed, with two consecutive quarters in which we generated revenues above 10 billion euros each for the first time, and in the fourth quarter we exceeded the previous year’s profit.”
And for the current year: “The 2025, Sara a year of transformation for us with a clear goal: to further strengthen our position as a global leader outside the United States.” The seat capacity of its passenger airlines will grow by around 4 percent compared to the previous year, resulting in a corresponding increase in revenues. The German airline also added that it expects theAdjusted EBIT in 2025 will be significantly higher compared to last year.
