On an initial basis, the Lufthansa Group has reported an Adjusted EBIT loss of €849 million in the first quarter of 2024 (compared to a loss of €273 million the previous year). The loss exceeded expectations due to various strikes, both by different employee groups within the Group and by employees at system partners, which affected earnings by around €350 million. The Group’s Adjusted free cash flow stood positively at €305 million, primarily due to sustained high inflows from advance ticket payments.
The Group anticipates a lower operating result in the second quarter compared to the previous year. The second-quarter result is expected to suffer an additional negative impact of around €100 million due to the effects of recently resolved wage disputes, particularly at Lufthansa Airlines, on short-term travel demand and ongoing conflicts at Austrian Airlines. Moreover, the ramp-up of capacity in the second quarter is projected to be slightly lower than originally planned to enhance punctuality for customers and due to delays in new aircraft deliveries. Nonetheless, incoming bookings align with initial expectations, especially for the summer holiday months, supporting the Group’s forecast for the latter half of the year. The second-half result is anticipated to surpass that of the previous year.
An Adj. EBIT of approximately €2.2 billion is now projected for the entire year (previously expected stable earnings development compared to €2,682 million the previous year). Adjusted free cash flow is expected to be at least €1 billion (previously at least €1.5 billion). However, unforeseeable effects stemming from the recent escalation of the Middle East conflict and further geopolitical uncertainties pose risks to the Group’s full-year financial outlook.
