In 2024, the Lufthansa Group achieved record revenue of €37.6 billion, reflecting a six percent increase compared to the previous year's €35.4 billion. This growth was driven by a higher flight offering, making 2024 the most lucrative year in the company's history. However, the Group's operating profit (Adjusted EBIT) fell to €1.6 billion from €2.7 billion in 2023, with the operating margin declining from 7.6 percent to 4.4 percent.
The decline in profitability was attributed to various factors, particularly in the first half of the year. Strikes impacted the Passenger Airlines division by approximately €450 million, while a sharp increase in industry-wide capacity led to a fall in average yields at the start of the summer. Additionally, higher operational costs, particularly in Germany, along with delayed aircraft deliveries, weighed heavily on performance. Net profit decreased less significantly, reaching €1.4 billion (previous year: €1.7 billion), partially due to lower interest expenses.
The Lufthansa Group Passenger Airlines welcomed 131 million passengers in 2024, marking a seven percent increase on the previous year. The passenger load factor rose to a record 83.1 percent, with July and August standing out as two of the strongest months in the company's history at nearly 88 percent. Despite this, average yields fell by 2.6 percent year on year, with the sharpest decline of nearly ten percent recorded in the Asia/Pacific region. Unit revenues (RASK) dropped by 4.3 percent due to high compensation payments related to flight disruptions, while unit costs increased by 1.9 percent due to strikes and inflation in fees, materials, and personnel costs.
The Group's Passenger Airlines reported an Adjusted EBIT of €1.0 billion, down from €2.0 billion in the previous year. Lufthansa Airlines saw the largest decline in earnings, falling by €948 million due to delayed aircraft deliveries, increased location and personnel costs, and higher compensation expenses. In contrast, SWISS maintained its strong performance with an Adjusted EBIT exceeding €800 million, while Eurowings repeated its result of over €200 million. Brussels Airlines recorded its best-ever profit at €60 million, and Austrian Airlines posted an Adjusted EBIT of €76 million.
Lufthansa Airlines is making progress with its turnaround programme, introduced eight months ago to enhance efficiency, reduce complexity, and improve product quality. Early results show improvements in punctuality and regularity, with the new City Airlines subsidiary playing a key role in operating short-haul flights more efficiently. The programme is expected to generate a gross effect of €1.5 billion on EBIT by 2026, rising to €2.5 billion by 2028.
Lufthansa Technik capitalised on the strong demand for maintenance, repair, and overhaul (MRO) services, generating an Adjusted EBIT of €635 million. The company secured new contracts worth €7.5 billion, ensuring revenue growth and planning stability for the coming years. A new plant in Portugal will open by 2027, creating 700 jobs for the repair of engine parts and aircraft components.
Lufthansa Cargo posted an operating profit of €251 million, driven by a robust recovery in airfreight demand and strict cost management. The company benefited from strong e-commerce business from Asia, shifting freighter capacities from the North Atlantic to the Asia/Pacific region.(€1.00 = US$1.09 at time of publication).
