Lufthansa Set For Turbulent 2024

Lufthansa reported its 2023 full-year results, which indicated many positive aspects. However, the Group has warned of a shakey 2024.

Lufthansa is forecasting a shakey 2024 as it continues battling labour disputes that have resulted in several strikes. This ongoing problem has ultimately negatively impacted the airline for years.

Several kinds of employees across the Group are seeking pay increases, from cabin crew to ground staff, with walkouts occurring in a bid to seek a better wage amid inflation and other factors.

A Strong 2023 For Lufthansa Group

With a shakey forecast, the Lufthansa Group still reported its third-best financial result in the history of the Group, with an operating profit of 2.7 billion euros. Additionally, the Group saw revenue increase by 15% to 35.4 billion euros.

Passenger numbers were another area that saw improvements. Over 120 million passengers were carried across the 2023 calendar year, an increase of 20%. Record deliveries of 20 long-haul jets also helped the airline considerably.

While aircraft deliveries were at record levels, the Group is still impacted by ongoing supply chain problems, which means Lufthansa Group airlines have been unable to complete their growth and transition efforts as initially planned.

Looking Ahead

Lufthansa will report an operating loss in the first quarter of 2024, which is expected to grow larger than initially expected as it battles several factors.

One of the primary causes for concerns has been Lufthansa’s persistent battle with labour disputes over pay, which has resulted in strike action and a substantial operational impact since the beginning of 2024.

While targets are present for the 2024 calendar year and significant revenue increases are expected, the labour difficulties will cause other financial hits.

Several other significant airlines reported increases in expenses during the 2023 calendar year as they negotiated and secured new payment deals with their employees to avoid strike action.

Demand is expected to be high, with the Group already seeing strong bookings throughout the year, especially during peak periods. Easter and the summer seasons are highlighted as key areas of focus. Additionally, the Group says that load factors for the year’s first three months have been solid and increased from last year.

Ultimately, the year is set to have its ups and downs with predominantly strong points. However, the Group will want to try and sort out disputes with its employee base over wages sooner rather than later to prevent further operational impact across the year.

Daniel Fowkes
08 Mar 2024
· Airlines 

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