Lufthansa Group reports stronger earnings after healthy summer travel

Lufthansa Group has recorded revenue of €10.7bn for its third quarter earnings, an increase of 5% from the same period last year. In terms of revenue, this was also the strongest quarter ever seen by the group and was mainly because of a rising number of flights and robust summer travel demand. 

Lufthansa Technik, the group’s repair, maintenance, modification and overhaul services provider, also reported strong growth, which contributed to the revenue boost. 

The group owns a number of airlines, including Brussels Airlines, Eurowings, Swiss International Air Lines (SWISS) and Discover Airlines.  

The number of passengers in the third quarter of 2024 rose 6% to 40m, with the seat load factor – showing how many available seats on a flight are occupied – increasing to 87%, up from 86% on the same time last year.

Operating profit, however, fell to €1.3bn from €1.5bn from the same period last year. As a result, operating margin also suffered, falling to 12.5%, down from 14.3% for the same time last year.  

This was mainly due to increases in costs including maintenance, repair and overhaul (MRO) expenses, fees and other personnel costs. Punctuality problems at the German hubs, as well as late aircraft deliveries and regulatory issues also continued to affect the group. 

Net profit dropped to €1.1bn in the third quarter of this year, down from €1.2bn for the same period last year. 

The group also confirmed its full-year outlook, expecting adjusted earnings before interest and taxes (EBIT) to be between €1.4bn and €1.8bn. 

Carsten Spohr, the chairman of the Executive Board and chief executive officer (CEO) of Deutsche Lufthansa AG, said in the earnings press release on the website on Tuesday: “Today, we are reporting on another strong summer travel season, with a record seat load factor of 88 per cent in August. 

“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. Across the group, we are continuing to invest in the largest fleet modernization in our history, in premium offers for our guests and in an even more international positioning.”

Lufthansa Groups grows route network

Lufthansa Group has been expanding its network of routes, having added a new direct SWISS flight from Berlin Brandenburg Airport to Geneva from Monday onwards. Eurowings will resume its daily non-stop Berlin to Dubai flights. It will introduce three weekly flights from Berlin to Jeddah, with plans to grow its network from Berlin even more in the next year. 

Currently, Eurowings flies to 115 destinations from Berlin, which include Lyon, Birmingham, London Heathrow, Calvi and Strasbourg, amongst several others. The Lufthansa Group itself connects Berlin to more than 300 global destinations, with one transfer, and to 36 destinations with non-stop flights. 

Lufthansa Group also won the “Best Airline App 2024” award at the World Aviation Festival (WAF), earlier this month in Amsterdam. Other competitors included apps from Qatar Airways, Emirates and Air India. 

Oliver Schmitt, the head of Digital Customer Solutions and the managing director of Digital Hangar GmbH, said in a press release on the website: “The digital travel experience of our guests is increasingly determined by their mobile devices. 

“The app is playing a growing role as a travel companion. In recent years, we have worked specifically on service offerings, especially in the event of irregularities, on simplifications and better information for our guests, and created numerous benefits for frequent flyers.”