Lufthansa Group Reports Decline in Net Profit for Fiscal 2024

Lufthansa Group's fiscal 2024 net profit falls to 1.4 billion euros, down from 1.7 billion euros last year. The operational performance shows declining EBIT, yet the company anticipates revenue growth for 2025 and future years.

Date: 06-03-2025

AI Rating: 5

Net Income Analysis: Lufthansa Group's net profit for fiscal 2024 declined to 1.4 billion euros, a decrease from 1.7 billion euros the previous year. This decrease may indicate challenges in maintaining profitability, which could dampen investor sentiment.

Operating Profit Analysis: The adjusted EBIT also saw a significant drop, falling to 1.6 billion euros from 2.7 billion euros the prior year. This decline suggests potential issues in operational efficiency or increased costs, which could raise concerns among investors.

Revenue Growth Analysis: Despite the decline in net profit and operating profit, the group recorded a revenue increase of six percent year on year, totaling 37.6 billion euros. This growth in revenue combined with a rise in passenger numbers by 7 percent to over 130 million indicates a demand recovery post-pandemic that could reassure investors about future performance.

Future Outlook: Looking forward, Lufthansa Group anticipates a significantly higher adjusted EBIT for 2025, driven by a planned expansion in seating capacity. The turnaround program is expected to enhance earnings further, projecting a gross effect of around 1.5 billion euros on EBIT by 2026 and 2.5 billion euros by 2028. This strategic focus on growth could positively influence investor confidence.

Dividend Proposal: The proposed dividend of 0.30 euros per share for the financial year 2024 suggests that despite short-term challenges, the company still aims to return value to shareholders, indicative of a level of confidence in its future earnings prospects.

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