Lufthansa Group Q2 Adj. EBIT Drops; Cuts FY24 Earnings View

(RTTNews) - Deutsche Lufthansa AG (DLAKY), the German flag carrier, on Friday announced weak preliminary adjusted earnings for the second quarter, and also trimmed its forecast for fiscal 2024 adjusted earnings.

Adjusted EBIT for the second quarter was 686 million euros, lower than prior year's 1.1 billion euros. The company noted that a market-related decline in yields in all traffic regions, especially in Asia, had a negative impact.

Lufthansa Airlines' quarterly profit was 213 million euros, down from previous year's 515 million euros.

Lufthansa Airlines' first -half loss was 427 million euros, compared to previous year's profit of 149 million euros.

Looking ahead, the company said it is increasingly challenging for Lufthansa Airlines to break even for fiscal 2024, and that a comprehensive turnaround program is being launched to counteract the impact.

For the other passenger airlines as well as Lufthansa Technik and Lufthansa Cargo, second-half earnings are expected to be broadly at previous year's level, in some cases higher.

For the full year 2024, Lufthansa Group now expects an Adjusted EBIT in the range of 1.4 billion euros to 1.8 billion euros, compared to previous estimate of around 2.2 billion euros.

The outlook is largely dependent on the earnings development at Lufthansa Airlines and the traditionally important fourth quarter at Lufthansa Cargo, it said.

Adjusted free cash flow is expected to be significantly below 1 billion euros, while previous estimate was at least 1 billion euros.

Lufthansa is scheduled to publish its second-quarter results on July 31.

In Germany, Lufthansa shares were trading at 5.72 euros, down 1.28%.

For More Such Health News, visit rttnews.com