Lufthansa Group Q3 Operating Profit Declines, Revenue Up 5%; Confirms FY24 Adj. EBIT Outlook

(RTTNews) - Lufthansa Group (DLAKF, DLAKY) posted third quarter net profit of 1.09 billion euros, a deline of 8% from a year ago. Earnings per share from continuing operations was 0.93 euros compared to 1.00 euros. Adjusted EBIT was 1.34 billion euros, down 9%. Adjusted EBIT margin was 12.5% compared to 14.3%. The company said the year-on-year decline was due to significant cost increases, particularly in fees, MRO expenses and personnel.

The Group's passenger airlines generated an adjusted EBIT of 1.2 billion euros in the third quarter compared to 1.4 billion euros, prior year. The company stated that the decline in the operating profit of the passenger airlines is mainly driven by the 234 million euros decline in the result of Lufthansa Airlines.

Third quarter total revenue was 10.74 billion euros, up 5% year-on-year, due to the higher number of flights and the revenue growth at Lufthansa Technik. The Lufthansa Group airlines welcomed more than 40 million guests on board in the third quarter, an increase of six percent over the previous year.

The Lufthansa Group expects revenue to increase significantly in fiscal 2024. The Group expects yields to decline year-on-year. For 2024, the Lufthansa Group predicts adjusted EBIT of between 1.4 billion euros and 1.8 billion euros. The Lufthansa Group noted that it stands by goal of generating a sustainable adjusted EBIT margin of at least 8%. The Group expects to report a positive operating result in the fourth quarter.

The Lufthansa Group plans to increase capacity in the fourth quarter further compared to the previous year. For full year 2024, it expects a capacity of around 91 percent compared to the pre-crisis level.

"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," said Carsten Spohr, Chairman of the Executive Board and CEO.

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