Overview of business developments and comparison with original forecast

Course of business of the Lufthansa Group mainly influenced by delays to the delivery of aircraft, strikes, inefficiencies at Lufthansa Airlines, decreasing yields and irregularities in flight operations.

Although capacity expansion continued, the Lufthansa Group’s earnings declined significantly in 2024 compared with a year ago. A number of reasons are behind this development. In the first quarter of 2024 a number of strikes by both different employee groups in the Lufthansa Group and employees at system partners had a negative impact. Market-wide capacity growth intensified price pressure for the passenger airlines, especially in the second quarter of 2024, causing yields to fall. The effect of irregularities in flight operations had a negative impact on earnings, especially from the third quarter of 2024 onwards. By contrast, the fourth quarter of 2024 was marked by the strong performance of Lufthansa Cargo, which had a positive effect on the results of the Lufthansa Group. Earnings for the year as a whole were also negatively affected by ongoing high cost inflation and ongoing delays in the delivery of new aircraft, as older and comparatively more inefficient aircraft remained in service for longer.

Capacity in the Lufthansa Group’s passenger business increased 9% year-on-year in 2024. Relative to the pre-crisis level in 2019, capacity stood at 91%. However, it failed to meet the original target due to strikes and delayed aircraft deliveries.

Performance in the Logistics segment in 2024 was characterised by persistently high freight rates and strong Asian business as well as strikes in the first quarter of 2024.

In the MRO segment, high demand for flights prompted a further rise in demand for maintenance and repair services.

Adjusted EBIT of EUR 1,645m

Revenue at the Lufthansa Group increased by 6% year-on-year to EUR 37,581m (previous year: EUR 35,442m), primarily due to the further expansion of the flight programme at Passenger Airlines and strong growth in the Logistics and MRO business segments.

However, the Lufthansa Group’s earnings were down year-on-year in 2024. Adjusted EBIT declined by 39% to EUR 1,645m (previous year: EUR 2,682m). The Adjusted EBIT margin amounted to 4.4% (previous year: 7.6%).

The decline in earnings was due largely to the effects of strikes, which reduced earnings by around EUR 450m, as well as operating difficulties and the decline in yields combined with rising costs, particularly as a result of inflation in material costs, higher fees and charges and staff costs, for example. The cancellation of flights due to the Middle East conflict depressed earnings at the Lufthansa Group by around EUR 100m.

In the reporting year, all the Lufthansa Group’s business segments reported positive earnings. At Passenger Airlines the result was significantly lower than the previous year, however. The Logistics business segment improved its earnings significantly year-on-year, particularly due to its strong performance in the fourth quarter. The MRO business segment reported another record result in the 2024 financial year. ↗ Business segments.

The net result attributable to shareholders of Deutsche Lufthansa AG in the reporting year came to EUR 1,380m (previous year: EUR 1,673m).

Positive Adjusted free cash flow of EUR 840m generated

Cash flow from operating activities decreased year-on-year by 21% to EUR 3,892m (previous year: EUR 4,905m), due primarily to the decline in Adjusted EBITDA. Net capital expenditure was down 14% to EUR 2,392m (previous year: EUR 2,771m) in the 2024 financial year.

The Lufthansa Group therefore generated positive Adjusted free cash flow in the 2024 financial year. At EUR 840m, this figure is 54% lower than the level of the previous year (previous year: EUR 1,846m), however.

Balance sheet even stronger in the reporting year

The balance sheet was made even stronger in the 2024 financial year. Despite the positive free cash flow, at EUR 5,744m, net indebtedness was up slightly by EUR 62m on year-end 2023 (31 December 2023: EUR 5,682m) due to interest and dividend payments and lease financing. However, net pension obligations were down EUR 110m to EUR 2,566m (31 December 2023: EUR 2,676m) thanks to the positive performance of plan assets. Equity as of 31 December 2024 increased by EUR 1,885m over year-end 2023 to EUR 11,594m (31 December 2023: EUR 9,709m).

At the end of the 2024 financial year, the Group had available liquidity of EUR 11.0bn (previous year: EUR 10.4bn). ↗ Financial position.

Forecast for key figures adjusted during the year

The Lufthansa Group prepared and announced its outlook for the 2024 financial year with the publication of the Annual Report 2023 on 7 March 2024. At this point in time, the forecast for the 2024 financial year was for a significant increase in revenue and Adjusted EBIT at the same level recorded in the previous year. Revenue rose year on year by 6% to EUR 37,581m, which was less than expected. In view of the deteriorating earnings performance over the reporting year, the original forecast for Adjusted EBIT was revised in April 2024 and July 2024. The forecast for Adjusted EBIT between EUR 1.4 and EUR 1.8bn released in July 2024 was achieved with Adjusted EBIT reaching EUR 1,645m.

Net capital expenditure is expected to be on par with the previous year. At EUR 2,392m, it was ultimately 14% below the level recorded in the previous year, primarily because of delays in the delivery of new aircraft.

The forecast for Adjusted free cash flow was also revised over the course of the year. The expectation for Adjusted free cash flow, most recently revised in July 2024 to significantly below EUR 1bn, proved correct, with a reported Adjusted free cash flow of EUR 840m.

A slight decline in net indebtedness was predicted. Ultimately, the figure was 1% up on the previous year at EUR 5,744m.

Adjusted ROCE was forecast to be on par with the previous year. The figure of 7.2% was significantly lower than in the previous year due to the fall in earnings.

The forecast of slight reduction in specific carbon emissions in 2024 was met.