Lufthansa Group reports impact of strikes on results and adjusts full-year outlook accordingly
On a preliminary basis, the Lufthansa Group recorded an Adjusted EBIT loss of EUR 849 million in the first quarter of 2024 (previous year: loss of EUR 273 million). The loss was higher than expected due to various strikes, both by different employee groups within the Group and by employees at system partners, which impacted earnings by around EUR 350 million. The Group’s Adjusted free cash flow was positive at EUR 305 million, mainly due to continued high inflows from advance ticket payments.
The Group expects that the operating result in the second quarter will be lower than in the previous year. The result for the second quarter is expected to be negatively impacted by an additional around EUR 100 million because of the effects that the now settled wage disputes, particularly at Lufthansa Airlines, had on short-term demand for travel bookings and ongoing conflicts at Austrian Airlines. In addition, the ramp-up of capacity in the second quarter is forecasted to be slightly lower than originally planned to support improvements in punctuality for the customers and because of delays in new aircraft deliveries. Overall, incoming bookings are in line with original expectations, especially for the summer holiday months, supporting the Group’s forecast for the second half of the year. In the second half of the year, the result is expected to be higher than in the previous year.
Adj. EBIT of around EUR 2.2 billion is now expected for the year as a whole (previously: stable earnings development compared to EUR 2,682 million in the previous year). Adjusted free cash flow is expected to be at least EUR 1 billion (previously: at least EUR 1.5 billion). The as yet unforeseeable effects of the recent escalation of the Middle East conflict and further geopolitical uncertainties pose risks to the Group's full year financial outlook.
The Group will provide further details on the financial outlook when it publishes its final results for the first quarter on 30 April.