Deutsche Lufthansa (LHA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached €10.7 billion, up 5% year-over-year, marking the highest quarterly revenue in company history, driven by robust global demand and record seat load factors despite operational and regulatory challenges.

• Adjusted EBIT for Q3 was €1.34 billion, down 9% year-over-year, with all passenger airlines posting positive results except the core brand, which underperformed due to strikes, operational disruptions, and falling yields.

• Passenger load factor hit a record 88% in August and 87.2% for Q3, with over 40 million passengers carried.

• Strategic focus remains on internationalization, premium offerings, and fleet modernization, with the largest fleet renewal underway and a major turnaround program targeting €1.5 billion EBIT improvement by 2026.

• Sale of AirPlus completed for €450 million, and European Commission approved a 41% ITA Airways stake, subject to conditions.

Financial highlights

• Q3 revenue grew 4.5–5% year-over-year to €10.7 billion, driven by 6% capacity growth and strong MRO performance.

• Adjusted EBIT for Q3 was €1.34 billion, a 9% decrease from last year, with margin at 12.5%.

• Adjusted free cash flow for Q3 was €128 million, significantly lower than last year due to lower operating result and higher tax payments.

• Net debt declined, leverage ratio improved to 1.9x, and available liquidity stood at €11.4 billion.

• Operating expenses increased 6–10% year-over-year, mainly due to inflation, higher staff costs, and expanded operations.

Outlook and guidance

• Full-year 2024 capacity expected at 91% of 2019 levels, slightly below prior guidance.

• Unit revenues expected to decline mid-single digits year-over-year; CASK ex-fuel to rise low single digits.

• Adjusted EBIT guidance for 2024 confirmed at €1.4–1.8 billion, with free cash flow expected significantly below €1 billion.

• Positive demand trends continue into Q1 2025, with limited capacity growth and stabilizing yields.

• Target remains a sustainable Adjusted EBIT margin of at least 8%.