Lufthansa Group Adjusts Outlook After Costly Strikes
The Lufthansa Group has faced significant financial headwinds in the first quarter of 2024, reporting an adjusted EBIT loss of EUR 849 million—a substantial increase from last year's EUR 273 million loss during the same period. This downturn was primarily driven by a series of strikes, which collectively cost the Group around EUR 350 million in lost earnings.
In the first quarter of 2024, various employee groups within Lufthansa and system partners engaged in strikes, substantially impacting the Group's operations and financial performance. Despite these challenges, the Group's adjusted free cash flow remained positive at EUR 305 million, bolstered mainly by advance ticket payments.
Looking ahead, the Group has revised its financial expectations for the year. For the second quarter of 2024, the operating results are anticipated to fall short of the previous year's figures. The quarter is expected to see an additional EUR 100 million impact due to the residual effects of recent wage disputes at Lufthansa Airlines and ongoing conflicts at Austrian Airlines. These disputes, now resolved, had temporarily dampened demand for travel bookings. The capacity increase for the quarter has also been scaled back slightly to enhance punctuality for customers and due to delays in new aircraft deliveries.
Despite these setbacks, the Group remains optimistic about its performance in the latter half of the year, especially during the peak summer holiday season, when bookings are expected to align with initial projections. For the full year, Lufthansa now projects an adjusted EBIT of around EUR 2.2 billion, adjusted from earlier forecasts of maintaining parity with last year’s EUR 2,682 million.
Furthermore, the Group has revised its expected adjusted free cash flow for the year to at least EUR 1 billion, down from the previously anticipated EUR 1.5 billion. This adjustment comes amid the escalating Middle East conflict and other geopolitical uncertainties, which introduce additional risk factors for the year’s financial outlook.
