Lufthansa Group has lowered its profits outlook for the full-year after disclosing a deeper than expected adjusted EBIT loss of €849 million ($903 million) for the first quarter amid strike disruption.
The group estimates it took a hit of around €350 million from industrial action, both among its own staff and from various system partners, in the first quarter.
This it cites as the main factor for losses widening to €849 million over the first three months of 2024 from a first quarter loss of €273 million last year.
While the group has since reached pay deals with ground staff and cabin crew covering Lufthansa and its German units, it says the impact this had on bookings – together with ongoing conflicts at Austrian Airlines – means it expects a further €100 million hit in the second quarter.
This is compounded by a “slightly lower than expected” step up in capacity in the second quarter due to continued aircraft delivery delays.
While it is sticking with expectations for a stronger performance over the second half of the year – citing bookings in line with its original expectations – the group has now lowered its guidance for full-year adjusted EBIT to around €2.2 billion. It had originally projected this to be roughly on a par with the €2.68 billion it made in 2023.
It further adds: ”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 Star Alliance carrier group will publish its full first quarter results on 30 April.
