Lufthansa Group Sets Record with €37.6B Revenue, Its Best Year Ever

Lufthansa Group Reports Record High Revenues.

This week, the largest airline group in Europe presented its last quarter profits with a new revenue record in the company’s history.

In 2024, the Lufthansa Group increased its revenues by 6% compared to the previous year, reaching 37.6 billion euros (compared to 35.4 billion euros the previous year), thanks to increased flight frequencies.

This marks the year with the highest revenues in the history of the Lufthansa Group. The company recorded an operating profit (adjusted EBIT) of 1.6 billion euros (compared to 2.7 billion euros the previous year), with an operating profit margin of 4.4% (compared to 7.6% the previous year).

The decrease compared to last year resulted from several factors, particularly in the first half of the year: strikes affected airlines to the tune of approximately 450 million euros.

The airlines also had to deal with a significant drop in average revenues at the beginning of summer, due to increased capacity across the industry. Significantly higher costs, especially in Germany, also impacted results. Productivity in flight operations was also affected by prolonged delays in aircraft deliveries.

However, thanks to lower interest obligations compared to last year, net profit decreased modestly from the operational result and reached 1.4 billion euros (compared to 1.7 billion euros the previous year).

In 2024, the airlines of the Lufthansa Group flew 131 million passengers on their flights, an increase of 7% compared to the previous year.

The passenger load factor rose to a peak of 83.1% (compared to 82.9% the previous year).

In terms of load factor, the summer months of July and August were not only the strongest months last year, with a load factor of nearly 88%, but also among the strongest in the company’s history.

Due to the increase in capacity across the industry, average revenue per seat in 2024 fell by 2.6% compared to the previous year, with significant improvement in results throughout the year. Average revenues varied considerably between different traffic regions: while in many areas the decline was under 2%, it was particularly sharp in the Asia/Pacific region, with a drop of nearly 10%. Revenue per seat (RASK) benefited from an increase in load factors compared to 2023, but the basic revenues were diminished due to high compensation payments due to irregularities in flights, leading to an overall 4.3% decrease in revenue per seat. Costs per unit of capacity rose by 1.9% compared to last year, due to the impact of strikes and prolonged inflation in costs, mainly in fees, materials, and labor costs.

Overall, the airlines (that flew passengers) of the group generated an adjusted operating profit (EBIT) of 1.0 billion euros in 2024 (compared to 2.0 billion euros the previous year). The decline in operating profit of the airlines was primarily caused by the drop in revenues of Lufthansa, which decreased by 948 million euros. Delays in the delivery of new aircraft forced Lufthansa to keep aircraft in service for longer, which, along with higher positioning and labor costs, as well as increased expenses for compensating flight irregularities, significantly affected profits.

SWISS almost restored its record results from the previous year, successfully crossing the threshold of 800 million euros in adjusted operating profit (EBIT) for the second time. Eurowings restored its good result from the previous year, again reporting an adjusted operating profit of over 200 million euros. Brussels Airlines achieved its highest profit in history, with 60 million euros, and Austrian Airlines reported an adjusted operating profit of 76 million euros.

Photo: Lufthansa

Lufthansa is working diligently to implement the transformation plan that began eight months ago, aiming to improve efficiency, reduce complexity, and enhance product quality – to ensure the long-term competitiveness of the airline. The package of measures initially focuses on operational stability. Already in the early months of 2025, Lufthansa experienced a significant improvement in flight arrival times and flight regularity. The establishment of "City Airlines" proves to be a strategically sound step for efficiently and economically operating short flights within Europe.

The transformation plan will continue to contribute to improving the profitability of Lufthansa. In 2026, the measures are expected to achieve a gross effect of about 1.5 billion euros on EBIT, and by 2028 the effect is expected to reach about 2.5 billion euros.

Carsten Spohr, Chairman of the Board and CEO of Lufthansa noted: "Aviation is and remains an industry of the future with strong and sustained demand. Especially in unstable times, it enables international understanding through cultural and economic exchanges. At Lufthansa Group, we can look back and see the strongest revenue year in the company’s history, with a new peak in load factors. I would like to thank our customers for their loyalty and all our employees for their great commitment. If we look back, 2024 was divided into two halves for Lufthansa Group. In the first half of the year, we still had to deal with a significant decline in operating profit – in part due to strikes, delays in aircraft deliveries, and operational challenges at our home airports.

The direction reversed during the year, with two consecutive quarters in which we generated revenues of over 10 billion euros each, for the first time in the company’s history, and in the fourth quarter we surpassed last year’s profit.

The emerging internationality of Lufthansa Group, through the integration of ITA Airways, the significantly improved operational stability of flight operations, and the increasing satisfaction of our customers – all these demonstrate that our strategy is correct and the steps we have taken are impactful. At the same time, there is no doubt that we now also need to achieve an economic turnaround for our main brand, Lufthansa. This year, 2025, will be a year of change for us with a clear goal: to further strengthen our position as number one in the world outside the United States."

Lufthansa Technik and Lufthansa Cargo Improve Results

In 2024, Lufthansa Technik benefited from the ongoing high demand for flights and the increased demand for maintenance, repair, and overhaul (MRO) services worldwide. As a global leader in the MRO market, Lufthansa Technik capitalized on the situation, signing new contracts totaling 7.5 billion euros. This is to ensure planning stability and revenue growth for the company in the coming years. In the past financial year, Lufthansa Technik recorded an adjusted operating profit of 635 million euros (compared to 628 million euros the previous year). By 2027, the company will establish a new plant in Portugal for the repair of engine parts and aircraft components, creating 700 new jobs.

Air cargo business continued to recover during 2024. Lufthansa Cargo generated an operating profit of 251 million euros for the entire year (compared to 219 million euros the previous year), of which 199 million euros were in the fourth quarter, which is traditionally strong for air cargo (compared to 30 million euros the previous year). This development not only confirms the expected normalization in the air cargo market but also the results of a rigorous cost management that allows for profitable growth. Lufthansa Cargo particularly benefited from strong e-commerce activity from Asia. Thanks to its fleet of aircraft, it was possible to shift capacities from North America to Asia/Pacific.

Rapid Integration of ITA Airways

The expansion of the multi-hub, multi-company, and multi-brand model through the integration of ITA Airways, with its strong home market in Italy and its 5-star rated Rome station, creates additional growth opportunities for Lufthansa Group in 2025. The completion of the full integration of ITA Airways is expected to be completed within 18 months. The transfer of ITA Airways to Munich and Frankfurt will be completed by the start of the summer flight schedule at the end of March, in order to facilitate transfer connections. Reciprocal access to waiting lounges, integration of frequent flyer programs, and the launch of a shared code have already been implemented in recent days and weeks. With ITA Airways, the number of employees in the group will increase by 5,000 and the fleet size will grow by 100 aircraft, reaching a total of 830 aircraft.

Photo: Lufthansa Group

Lufthansa Group to Introduce New Umbrella Brand Strategy

Lufthansa Group will introduce a new umbrella brand strategy in 2025.

The goal is to make the group’s benefits more accessible and tangible for passengers. In addition, the synergies that come from the interaction between different airlines will become more accessible. Currently, about half of the connecting passengers in the Lufthansa Group already use more than one airline within the group. They benefit from complementary networks, shared ground infrastructure, and a world-leading application. Under the umbrella brand LUFTHANSA GROUP, the connections between the various brands and how they interact within the airline group will be more transparent and identifiable in the future.

Outlook

The company expects high demand for flights, which is reflected in a positive booking trend at the beginning of 2025. The order situation in the MRO sector also indicates sustained demand for maintenance services. Lufthansa Cargo expects to benefit from continued growth in e-commerce and improved cost positioning.

Meanwhile, 2025 is expected to be a transition year for Lufthansa Group. The transformation plan in the airlines of Lufthansa is a top strategic priority, and it will lay the foundations for sustainable profitability growth. Initial steps will already begin to impact this year, but the transformation plan will not yet reach its full potential.

As part of the largest modernization of its fleet in its history, Lufthansa Group expects to receive a new, highly fuel-efficient aircraft every two weeks during the current year. In total, the order book includes about 250 aircraft, of which 100 aircraft are for long-haul flights.

Fleet renewal and investments in premium offerings directly affect customer satisfaction. Currently, nine Airbus A350s are already equipped with Allegris, seven of which also include the new premium class. In the second half of the year, the SWISS Senses experience will also be launched on long-haul flights of SWISS.

Photo: SWISS

Based on strong demand for flight tickets, Lufthansa Group plans to expand the seat capacity of its airlines by about 4% compared to the previous year. The company expects additional revenue growth as a result.

Overall, the group expects adjusted operating profit (EBIT) in the financial year 2025 to be significantly higher than the previous year. For 2025, Lufthansa Group expects net capital expenditures between 2.7 and 3.3 billion euros and free cash flow at the same level as the previous year.