Lufthansa Reports 18% Profit Drop for 2024 After Strikes and Rising Costs

The German airline cites labor disruptions, higher expenses, and delayed aircraft deliveries but forecasts improved performance in 2025.

• Lufthansa's net profit for 2024 fell to €1.38 billion, an 18% decrease from 2023, despite a 6% rise in revenue to €37.6 billion.
• Strikes by ground staff and cabin crew, coupled with inflation-driven costs in Germany, significantly impacted the airline's profitability.
• Other challenges included delayed aircraft deliveries, weak market conditions, and disruptions caused by geopolitical tensions in the Middle East.
• The company's operating margin dropped to 4.4%, falling short of its 8% target, though adjusted earnings of €1.65 billion slightly exceeded analyst expectations.
• Lufthansa has launched a turnaround program for its flagship carrier, aiming for €2.5 billion in gross profit contributions by 2028, with significantly higher profits projected for 2025.

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