Expenses
Operating expenses up 7%
Operating expenses came to EUR 18,534m in the reporting year, 7% higher than in the previous year (EUR 17,368m). They were mainly driven by the significant rise in the cost of materials and services, especially expenses for MRO services and compensation payments to passengers as a result of flight irregularities. Staff costs were also higher due to wage rises and a year-on-year increase in the headcount. Expenses for depreciation and amortisation were lower, whereas other operating expenses were unchanged year-on-year.
| T081 | TRENDS IN TRAFFIC REGIONS OF DEUTSCHE LUFTHANSA AG | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Traffic revenue | Passengers | Available seat-kilometres | Revenue seat-kilometres | Passenger load factor | ||||||
| 2024 | Change | 2024 | Change | 2024 | Change | 2024 | Change | 2024 | Change | |
| in €m | in % | in thousands | in % | in millions | in % | in millions | in % | in % | in pts | |
| Europe | 5,470 | 3 | 43,303 | 3 | 45,922 | 3 | 37,321 | 4 | 81.3 | 0.4 |
| Americas | 5,187 | 3 | 7,480 | 9 | 67,291 | 8 | 56,975 | 8 | 84.7 | 0.6 |
| Asia/Pacific | 2,606 | 1 | 3.856 | 20 | 36,356 | 20 | 29,879 | 19 | 82.2 | -0.6 |
| Middle East / Africa |
1,067 | -16 | 2,408 | -19 | 12,821 | -15 | 10,286 | -14 | 80.2 | 0.5 |
| Total traffic | 14,330 | 1 | 57,047 | 3 | 162,390 | 7 | 134,461 | 7 | 82.8 | 0.3 |
The cost of materials and services rose year-on-year by 10% to EUR 11,288m (previous year: EUR 10,294m). Almost one third of the cost of materials and services consisted of fuel expenses, which fell by 3% to EUR 3,834m (previous year: EUR 3,963m), however. Fuel consumption went up year-on-year due to the larger number of flights. At the same time, however, lower prices, additional hedging and a positive exchange rate effect caused fuel expenses to go down.
Expenses for external services increased by 17% to EUR 7,241m (previous year: EUR 6,166m). Expenses for external MRO services increased by 29% to EUR 2,034m (previous year: EUR 1,578m) as a result of additional and more expensive maintenance events. Expenses for fees and charges increased by 8% to EUR 1,907m (previous year: EUR 1,766m), principally due to volumes and pricing. Expenses to compensate passengers for flight irregularities were up by 75% to EUR 525m (previous year: EUR 300m). This figure includes expenses for payments already made in connection with flight irregularities in financial year 2024, compensation payments already made for flight irregularities in prior years and additions to provisions for passenger claims that are still expected. Whereas expenses for operating leases increased year-on-year by 6% to EUR 707m (previous year: EUR 670m), largely due to prices, charter expenses rose year-on-year by 11% to EUR 565m (previous year: EUR 507m). Discover Airlines took over fewer routes from Lufthansa Airlines than in the previous year, while charter expenses for external airlines such as AirBaltic or CityJet increased significantly.
Staff costs went up by 5% to EUR 3,858m (previous year: EUR 3,661m). This increase was primarily due to higher expenses for basic pay, plus the corresponding social security contributions. Higher expenses due to the year-on-year increase in the headcount were almost completely offset by lower expenses for variable remuneration.
Depreciation and amortisation fell by 8%, to EUR 393m (previous year: EUR 426m). The decline is chiefly due to the addition of several aircraft to Austrian aircraft leasing companies.
Other operating expenses were around the previous year’s level at EUR 2,995m (previous year: EUR 2,987m). The fall in expenses for foreign exchange measurement was offset by higher expenses for items indirectly related to operating activities, such as travel and training expenses for crews, and expenses for advertising and rent.
Certain economic hedging relationships are presented in the financial statements as balance sheet hedging relationships in accordance with Section 254 HGB. Instruments to hedge the price of future fuel requirements, foreign currency hedging transactions to hedge exchange rates and interest rate hedges for interest-bearing financial liabilities are combined with corresponding hedged items within valuation units in accordance with Section 254 HGB.