Lufthansa Group adjusts full-year guidance

16.07.2024 - 10:39 / traveldailynews.com / Theodore Koumelis

Lufthansa Group’s Q2 Adjusted EBIT dropped to 686m. euros from 1.1b, euros impacted by yield declines, especially in Asia. Lufthansa Airlines faces a challenging year, with a half-year loss of 427m. euros, prompting a comprehensive turnaround program. Full-year EBIT forecast revised to 1.4-1.8b. euros.

On a preliminary basis, Lufthansa Group has achieved an Adjusted EBIT of 686 million euros in the second quarter of 2024 (previous year: 1.1 billion euros ). In particular, a market-related decline in yields in all traffic regions – especially in Asia – had a negative impact. Unit costs of the Group’s passenger airlines in the second quarter were at previous year’s level. Adjusted free cash flow of Lufthansa Group amounted to 573 million euros.

With a quarterly profit of 213 million euros, Lufthansa Airlines‘ result was around 300 million euros lower compared to previous year (515 million euros). Overall, Lufthansa Airlines recorded a half-year loss of -427 million euros (previous year: profit of 149 million euros). Lufthansa Airlines is particularly affected by the challenges posed by the negative market trend and by inefficiencies in the flight operations of Lufthansa and Cityline, also due to delayed aircraft delivery. It is becoming increasingly challenging for Lufthansa Airlines to break even for the full year. To counteract this, a comprehensive turnaround program is being launched.

For the other passenger airlines as well as Lufthansa Technik and Lufthansa Cargo, earnings for the second half of the year are expected to be broadly at previous year’s level, in some cases higher.

Therefore, for the full year 2024, Lufthansa Group now expects an Adj. EBIT in the range of 1.4 euros to 1.8 billion euros (previously: around 2.2 billion euros). This outlook is largely dependent on the earnings development at Lufthansa Airlines and the traditionally important fourth quarter at Lufthansa Cargo.

Adjusted free cash flow is expected to be significantly below 1bn euros (previously: at least 1bn euros), based on the new Adj. EBIT guidance and given uncertainties around capex development in the second half of the year.

The Group will provide further details on the financial outlook when it publishes its final results for the second quarter on 31 July.

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