The Lufthansa Group has released its financial results for the second quarter of 2024, revealing a mixed performance as the airline industry continues to face challenges in a normalizing post-pandemic market.

Key Highlights:

• Q2 revenue increased by 7% to €10 billion
• Adjusted EBIT fell to €686 million, down from €1.1 billion in Q2 2023
• Passenger numbers rose to 36 million in Q2, up from 33.3 million in the same period last year
• Capacity reached 91% of pre-crisis (2019) levels

Despite strong demand for air travel, with passenger numbers up 10% in the first half of 2024, the Lufthansa Group faced headwinds from normalizing ticket prices, increased capacity, and rising costs. The company's flagship carrier, Lufthansa Airlines (LH), was particularly affected, prompting the launch of a comprehensive turnaround program.

Carsten Spohr, CEO of Deutsche Lufthansa AG, acknowledged the challenges, "Flying has lost none of its fascination – global demand for air travel remains strong. As a result, we exceeded the 10 billion euros turnover mark for the first time in the second quarter. However, due to the increased available seat capacity, the normalization of airfares and average yields continued in all markets worldwide in the first half of the year."

Second Quarter Performance, Outlook

The Group's performance was impacted by several factors, including:

• Strike-related costs exceeding €100 million
• A 10% increase in operating expenses due to expanded operations and inflation
• Declining unit revenues (RASK) across all traffic regions, particularly in Asia

On a positive note, Lufthansa Technik continued to perform strongly, posting another record result in the year's first half. Lufthansa Cargo also remained steady, achieving an Adjusted EBIT of €36 million in Q2, broadly in line with the previous year.

In response to these challenges, LH has initiated a turnaround program focusing on increasing efficiency, reducing complexity, and improving quality. The program includes optimizing the network, increasing productivity, and strategically expanding the operations of Discover Airlines (4Y) and Lufthansa City Airlines (VL).

Looking ahead, the Lufthansa Group has adjusted its annual outlook, now expecting an Adjusted EBIT of €1.4 to €1.8 billion for the 2024 financial year. This forecast largely depends on the performance of passenger and cargo operations in the fourth quarter.

The featured image shows a majestic LH Boeing 747-400. the financial report mentioned the the German airline group was to retire the Jumbo along with its Airbus A340s by 2028 as part if its fleet planning.