Lufthansa Group Adjusts Financial Outlook Due to Strike Impacts

Deutsche Lufthansa AG reported a significant impact on its first quarter financial results for 2024, attributed mainly to various strikes across the Group. The Adjusted EBIT reported a loss of EUR 849 million, a substantial increase from the EUR 273 million loss recorded in the previous year. The strikes have caused a negative earnings impact of approximately EUR 350 million. Nevertheless, the Group maintained a positive Adjusted free cash flow of EUR 305 million, primarily due to robust inflows from advance ticket payments.

Looking forward, Lufthansa anticipates further challenges in the second quarter, with expected additional impacts of around EUR 100 million from resolved wage disputes and ongoing issues at Austrian Airlines. Despite these setbacks, bookings for the summer season remain strong. The company has adjusted its full-year Adjusted EBIT forecast to about EUR 2.2 billion, down from the previous expectation of mirroring last year's EUR 2.682 million. Similarly, the forecast for Adjusted free cash flow has been revised to at least EUR 1 billion, reduced from the earlier EUR 1.5 billion projection.

The revised financial outlook also considers the potential unforeseen effects of the escalating conflict in the Middle East and other geopolitical uncertainties. Lufthansa plans to provide a detailed update on its financial performance and prospects on April 30, when it releases its finalized first quarter results.