Lufthansa continues to strengthen its position in the global aviation industry
German aviation giant Lufthansa Group achieved a record revenue of EUR 37.6 billion in 2024, reflecting a 6 pc increase from the previous year. The airline attributed this growth to strong demand for air travel and operational efficiency. With this milestone, Lufthansa says it continues to strengthen its position in the global aviation industry.
In a press statement, Lufthansa Group says that it recorded an operating profit of EUR 1.6 billion, down from EUR 2.7 billion in 2023, attributed to strikes, increased industry-wide capacity, and higher costs.
It adds that despite the decline in full-year profit, Lufthansa’s fourth-quarter profit rose to EUR 468 million, an increase of EUR 66 million year-on-year.
The statement adds that the passenger numbers grew 7 pc to 131 million, with a record load factor of 83.1 pc. The group will propose a EUR 0.3 per share dividend at its Annual General Meeting on May 6.
Lufthansa Group says that its passenger airlines recorded an Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of EUR 1 billion, significantly lower than EUR 2 billion in 2023.
It adds that the decline was mainly due to Lufthansa Airlines’ earnings dropping by EUR 948 million, impacted by delayed aircraft deliveries, increased personnel costs, and compensation for flight disruptions.
According to Lufthansa Group, Swiss remained profitable with over EUR 800 million in adjusted EBIT, while low-cost subsidiary Eurowings posted over EUR 200 million, Brussels Airlines recorded its highest-ever profit of EUR 60 million and Austrian Airlines achieved EUR 76 million.
Lufthansa Airlines says that it continues implementing its turnaround programme, focusing on operational stability, efficiency, and cost reduction.
It adds that the programme aims to deliver a gross EBIT impact of EUR 1.5 billion by 2026 and EUR 2.5 billion by 2028. Lufthansa’s new subsidiary, City Airlines, is expected to improve cost-efficiency on European short-haul routes.
According to statement, Lufthansa Technik reported an Adjusted EBIT of EUR 635 million, benefiting from high demand for aircraft maintenance. It secured EUR 7.5 billion in new contracts and plans to open a new plant in Portugal by 2027, creating 700 jobs.
It adds that Lufthansa Cargo’s profit grew to EUR 251 million, up from EUR 219 million in 2023, driven by strong e-commerce demand from Asia and optimised capacity allocation.
It further adds that Lufthansa is integrating ITA Airways within 18 months, expanding its multi-hub, multi-brand model. ITA’s relocation in Frankfurt and Munich will be completed by March, with full distribution integration expected by the end of the year.
The Group says that this addition will increases its workforce by 5,000 employees and fleet size to 830 aircraft.
Till Streichert
It adds that the airline is undergoing its largest-ever fleet modernisation, with deliveries of one new aircraft every two weeks. The group has ordered 250 aircraft, including 100 long-haul planes, to improve operational efficiency.
Lufthansa Group says that it expects moderate capacity growth of 4 pc, driven by continued strong demand and fleet modernisation. The company forecasts a significant increase in Adjusted EBIT compared to 2024, with capital expenditure between EUR 2.7 billion and EUR 3.3 billion and free cash flow remaining stable.
“This year, we expect moderate capacity growth of around 4 pc. This will help to support our revenue growth, secure valuable market shares, stabilise our earnings and further improve our operations. Nevertheless, current challenges will persist. These include delays in aircraft deliveries and ever-present cost pressures. We therefore regard 2025 as a transition year in which we will lay the foundations for future increases in profitability. Nevertheless, progress will be clearly visible in every respect. This will also be reflected in our Adjusted EBIT, which we expect to be significantly higher than in the previous year,” says Till Streichert, Chief Financial Officer, Deutsche Lufthansa AG.
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