Lufthansa Group Reports Record Q3 Revenue, Profit Margins Decline

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The Lufthansa Group posted record revenue in the third quarter of 2024, marking the strongest quarter in its history with €10.7 billion, a 5% increase year-over-year. Despite this, profitability lagged slightly, with an operating profit (Adjusted EBIT) of €1.3 billion, down from an operating margin of 14.3% in Q3 2023 to 12.5% this year. Net profit also saw a dip, coming in at €1.1 billion compared to €1.2 billion in the previous year, affected by a 14% yield decline in the Asia-Pacific region.

The group’s seat load factor improved from 86% in Q3 2023 to 87% in Q3 2024, signaling steady demand. However, Lufthansa Airlines, the core German business within the group, reported a €234 million decline in profit. The company attributed this drop to delivery delays for new aircraft, higher labor costs, and operational challenges at German airports affecting punctuality. The airline is undergoing a turnaround program to address these challenges.

On a positive note, Lufthansa Group managed to reduce its debt over the first nine months of 2024 and reported strong demand for premium class bookings through the year-end, which it expects will support revenue. The company reiterated its financial guidance for 2024, projecting an Adjusted EBIT between €1.4 billion and €1.8 billion, reflecting optimism for continued growth in high-margin travel segments.

Related News : https://airguide.info/?s=Lufthansa+airlines

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