Lufthansa Group lowers full-year guidance amid market challenges

• Q2 Adjusted EBIT of EUR 686 million, down from EUR 1.1 billion last year.
• Decline in yields, especially in Asia, impacts earnings.
• Lufthansa Airlines faces significant operational inefficiencies and market pressures.
• Full-year Adjusted EBIT forecast revised to EUR 1.4-1.8 billion from EUR 2.2 billion.
• Adjusted free cash flow expected to be significantly below 1 billion EUR.

Lufthansa Group has revised its full-year 2024 guidance, now expecting an Adjusted EBIT of EUR 1.4 to 1.8 billion, down from the previously anticipated EUR 2.2 billion. This adjustment follows a preliminary Q2 Adjusted EBIT of EUR 686 million, significantly lower than the EUR 1.1 billion reported in the same period last year, due to a decline in yields across all traffic regions, particularly in Asia.

Lufthansa Airlines reported a quarterly profit of EUR 213 million, EUR 300 million less than the previous year, and a half-year loss of EUR 427 million. The airline is launching a comprehensive turnaround program to address these challenges.

Despite the difficulties faced by Lufthansa Airlines, other passenger airlines, Lufthansa Technik, and Lufthansa Cargo are expected to perform at or above last year’s levels in the second half of the year. Adjusted free cash flow for the full year is projected to be significantly below 1 billion EUR, influenced by the revised EBIT guidance and uncertainties in capital expenditures.

Further details will be provided in the final Q2 results on 31 July.