GERMAN flag carrier lufthansa said that it is likely to incur around EUR455 million (US$484 million) negative impact on earnings in 2024 as a result of strikes in the first quarter and further expected industrial action at some of its subsidiaries in the second.
As a consequence, the airline issued a profit warning for fiscal 2024, admitting that it will not be able to fully recover the cost.
The airline had to deal with strikes by various groups since the beginning of 2024. Among them were pilots at Discover, flight attendants, and ground staff. Most of the disputes have by now been settled, but some negotiations are still continuing, among them pilots and flight attendants at Discover, Austrian and CityLine.
Lufthansa has also noticed a negative effect on demand as customers were more cautious in booking flights with a higher than usual risk of cancellations.
In the first quarter, the airline posted a EUR849 million adjusted operating loss, more than three times the EUR273 million deficit in the first quarter of 2023. Adjusted free cash flow remained positive, however, at EUR305 million.
Lufthansa warned that the ramp-up of capacity in the second quarter is now forecast 'to be slightly lower than originally planned to support improvements in punctuality for the customers and because of delays in new aircraft deliveries.'
The company said earlier this year it expects to take delivery of 30 additional aircraft in 2024, among them 20 long-haul aircraft (Boeing 787-9s and Airbus A350-900s).
Through the end of March, the group has received one A320neo for Brussels Airlines and one A321neo for Eurowings. No Boeing aircraft have been delivered to Lufthansa Group since the start of the year.
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As a consequence, the airline issued a profit warning for fiscal 2024, admitting that it will not be able to fully recover the cost.
The airline had to deal with strikes by various groups since the beginning of 2024. Among them were pilots at Discover, flight attendants, and ground staff. Most of the disputes have by now been settled, but some negotiations are still continuing, among them pilots and flight attendants at Discover, Austrian and CityLine.
Lufthansa has also noticed a negative effect on demand as customers were more cautious in booking flights with a higher than usual risk of cancellations.
In the first quarter, the airline posted a EUR849 million adjusted operating loss, more than three times the EUR273 million deficit in the first quarter of 2023. Adjusted free cash flow remained positive, however, at EUR305 million.
Lufthansa warned that the ramp-up of capacity in the second quarter is now forecast 'to be slightly lower than originally planned to support improvements in punctuality for the customers and because of delays in new aircraft deliveries.'
The company said earlier this year it expects to take delivery of 30 additional aircraft in 2024, among them 20 long-haul aircraft (Boeing 787-9s and Airbus A350-900s).
Through the end of March, the group has received one A320neo for Brussels Airlines and one A321neo for Eurowings. No Boeing aircraft have been delivered to Lufthansa Group since the start of the year.
SeaNews Turkey