Lufthansa Group has confirmed its full-year profits target citing strong demand over the remainder of the year after posting 9% lower operating profit of €1.34 billion ($1.45 billion) in the third quarter.
It marks a steadying in performance from the Star Alliance carrier group after it has twice lowered profit expectations this year, amid challenges at Lufthansa German Airlines in particular.
While adjusted EBIT at the German unit was down 37% at €407 million for the third quarter, all the group’s passenger airlines were profitable for the July-September period. Low-cost unit Eurowings increased adjusted operating profit almost a third to €239 million, while Austrian Airlines and Brussels Airlines also reported higher third quarter profits. Swiss adjusted EBIT was down 8% for the period.
| Airline | Q3 2024 | Q3 2023 |
|---|---|---|
| Source: Lufthansa Q3 2024 report; operating profit = adjusted EBIT | ||
| Lufthansa | €407m | €641m |
| Swiss International Air Lines | €302m | €327m |
| Eurowings | €239m | €181m |
| Austrian Airlines | €139m | €129m |
| Brussels Airlines | €79m | €71m |
| Lufthansa passenger businesses | €1,162m | €1,356m |
| Lufthansa Group total | €1,340m | €1,468m |
Lufthansa Group chief executive Carsten Spohr says: ”Today, we are reporting on another strong summer travel season, with a record seat load factor of 88 percent in August.
”Global demand remains intact and bookings for the fourth quarter are also at a high level compared to the previous year, particularly in the premium classes.
”At the same time, delayed aircraft deliveries, punctuality issues at our hubs in Germany and regulatory disadvantages are impacting our core brand,” he says. To tackle the challenges at Lufthansa German Airlines, the group earlier this year launched a turnaround project which it says is making progress.
Lufthansa Group revenues increased 5% in the third quarter to €10.7 billion, the highest in the group’s history. That was achieved on carrying 40 million passengers in the period on capacity at 94% of pre-pandemic levels. Load factor was a point higher at 87.2%.
Citing strong demand for November and December, the group expects to report an operating profit for the fourth quarter. ”Overall, the Lufthansa Group is therefore confirming its expectation of achieving an adjusted EBIT of €1.4 to €1.8 billion for the full year,” it says.
