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• Revenue: Increased by 6% to EUR37.6 billion, marking a new record.

• Adjusted EBIT: EUR1.6 billion, a decline of around 40% compared to the prior year.

• Net Income: EUR1.4 billion.

• Dividend Proposal: EUR0.30 per share, resulting in a payout ratio of 26%.

• Passenger Airlines Capacity Growth: 8.5% increase in 2024.

• Swiss Airlines Margin: 12.4% in 2024.

• Lufthansa Cargo Adjusted EBIT: EUR251 million, a 15% increase from the previous year.

• Lufthansa Technik Adjusted EBIT: EUR635 million, slightly above the prior year's level.

• Operating Cash Flow: EUR3.9 billion, EUR1 billion below the prior year.

• Net Debt: Stable at EUR5.7 billion.

• Fuel Bill Projection for 2025: EUR7.9 billion.

• Aircraft Deliveries: 26 new aircraft expected in 2025.

• Warning! GuruFocus has detected 4 Warning Signs with DLAKF.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Deutsche Lufthansa AG (DLAKF) reported a strong fourth quarter in 2024, with an adjusted EBIT of EUR468 million, marking an improvement of EUR66 million from the previous year.

• The acquisition of a 41% stake in ITA Airways was completed, marking the largest acquisition in the company's history and a significant step towards further internationalization.

• Operational stability improved significantly, with the best operational start in the last 10 years reported in January and February 2025.

• Lufthansa Technik achieved a new high in EBIT at EUR635 million, driven by strong demand for MRO services and strategic initiatives.

• Lufthansa Cargo recorded a strong performance, particularly in the fourth quarter, with an adjusted EBIT of EUR199 million, driven by strong Asian e-commerce business.

Negative Points

• The core Lufthansa Airline brand underperformed, contributing to a EUR950 million decline in adjusted EBIT, highlighting the urgent need for an economic turnaround.

• Operating costs increased by around 9% in 2024, driven by higher cost inflation, increased staff costs, and irregularity costs due to strikes and operational instability.

• The company faced significant challenges due to the inability to use Russian airspace, impacting long-haul routes to the East and resulting in reduced capacity for Asia.

• Lufthansa Airlines did not deliver a positive margin in 2024, with inefficiencies, operational instability, and high location costs in Germany weighing on results.

• Aircraft delivery delays, particularly with Boeing long-haul aircraft, continue to pose challenges, affecting fleet optimization and capacity planning.

Q & A Highlights

Q: Can you provide more details on the expected capacity growth and its impact on profitability for 2025? A: Till Streichert, CFO, explained that Lufthansa anticipates a moderate capacity growth of around 4% in 2025. The company expects a favorable market environment with stabilizing yields and a positive contribution from the Lufthansa Airlines turnaround program. Despite some cost headwinds, including tariff increases and location costs in Germany, a significant improvement in profitability is expected, indicating double-digit growth.