Lufthansa Group Posted a €734 million loss in 1Q 2024

Lufthansa Group posted a €734 million net loss in First Quarter 2024, but reiterated a positive outlook for the summer 2024 peak travel season.  Much of the first quarter loss was attributed to labor disputes

that cost the airline more than €350 million during the quarter.  Revenues, however, increased to €7.3 billion, a 5% increase year-over-year, with a 12% increase in passenger traffic on a 12% increase in capacity.  

Lufthansa Group CEO Remco Steenbergen stated “We cannot be satisfied with the operating result for the first quarter; at more than 350 million euros, the various strikes had a significant impact on our result. Nevertheless, cash flow was positive due to the continuing high demand for air travel. We were also able to further strengthen our balance sheet. In the coming months, we will work intensively to compensate for the effects of rising costs. We have taken additional measures to this end, particularly at Lufthansa Airlines, which is significantly affected by rising personnel expenses and fees. I therefore remain convinced that we will be able to achieve stable unit cost development for the year as a whole without taking the strikes in the first quarter into account.”

Despite the poor first quarter, the positive outlook for the summer season is justified, with forward bookings 16% higher than at the same point last year.  “The company is now leaving the quarter behind and is at a turning point, having reached long-term wage agreements with several unions,” said Carsten Spohr, Chairman and CEO of Lufthansa Group.  “This means planning certainty and clarity for the coming years.  We are still seeing strong demand, which is even significantly higher than last year for the summer.”  With business travel also returning, the carrier is optimistic for the remainder of the year.