Lufthansa Airlines has reported a net loss of -€265m for the first half of 2024, following a net profit of €414m for the same period last year. The airline cited increasing seating capacities, delayed plane deliveries, strike costs, and structural issues as the main reasons for the loss. Operating income for the first half of the year was up 5% from last year, but adjusted EBITDA saw a significant drop of 49%. These challenges are expected to continue into the third quarter, with yields projected to be lower than in 2023.
In response to these difficulties, Lufthansa announced the launch of a turnaround programme aimed at increasing revenue, improving productivity, and enhancing customer experience. The programme will include raising investments in service and modernizing certain aircraft sub-fleets by 2028. Despite the setbacks, Lufthansa remains optimistic about the future, with strong global demand for air travel and the introduction of new projects like ‘Allegris’ and Lufthansa City Airlines.
Carsten Spohr, CEO of Deutsche Lufthansa AG, acknowledged the industry-wide challenges of rising costs and normalized air fares but expressed confidence in the company’s ability to strengthen its position as Europe’s leading airline. The airline remains committed to overcoming these obstacles and continuing to provide top-quality service to its customers.
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