Deutsche Lufthansa (LHA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue exceeded €10 billion for the first time, up 7% year-over-year, but Adjusted EBIT fell 37% to €686 million due to lower unit revenues, strikes, and cost inflation.

• Passenger numbers rose 10% year-over-year, with capacity up 11%, but yields normalized and unit revenue fell 5%; load factor declined 1 percentage point.

• Over 60 million passengers were flown in H1 2024, with strong demand driving capacity and sales growth, but earnings were hit by strikes, inflation, and intensified price pressure.

• Strategic milestones included the rollout of the Allegris premium cabin, ITA investment approval, launch of Lufthansa City Airlines, and sale of AirPlus.

Financial highlights

• Q2 revenue: €10 billion (+7% YoY); operating expenses up 10% due to inflation and higher production; fuel costs up 11%, staff costs up 8%.

• Adjusted EBIT Q2: €686–700 million; margin dropped to 6.9–7.2% from over 11% a year ago.

• Net income for Q2 2024 was €469 million, down 47% year-over-year.

• Free cash flow was strong, aided by CapEx shifts from delayed aircraft deliveries; Q2 adjusted free cash flow was €573 million.

• Net debt declined slightly; leverage ratio held at 2.0 including pensions.

Outlook and guidance

• Full-year adjusted EBIT expected at €1.4–1.8 billion, with Q4 performance at Cargo and Airlines critical.

• Capacity for 2024 to remain at 92% of 2019 levels; 2025 capacity likely below 100% of 2019.

• Unit revenues expected to decline low- to mid-single digits for the year; CASK to remain flat or rise slightly excluding strikes.

• Adjusted free cash flow for the year expected significantly below €1 billion.