Despite posting a first-quarter net loss of €734 million—partially
due to the negative effects of strike actions throughout the quarter, which impacted
earnings by €350 million—Lufthansa Group maintains a positive outlook for summer
demand, with summer bookings up 16 percent year over year, according to
executives on a Tuesday earnings call.
The company also sees continued recovery in corporate
travel. The first quarter ended with the segment recovered to about 65 percent
of 2019 levels, according to Lufthansa CFO Remco Steenbergen, but is expected
to move to 70 percent by the end of 2024. He did not identify whether that was
for demand or revenue.
India and Japan “are contributing to the recovery of
corporate travel, which continues to finally progress, especially on long-haul
routes,” but transatlantic flights continue to lead, Lufthansa CEO Carsten
Spohr said. “We are now devoting all our energy to further expanding our
premium customer offers and ensuring punctual and reliable flight
operations.”
Lufthansa Q1 Metrics
Lufthansa reported passenger revenue of more than €5.9
billion, up 3 percent year over year. Total revenue was nearly €7.4 billion, a
5 percent increase from a year prior. About 24 million passengers flew with
Lufthansa Group airlines during the quarter, up about 12 percent from the 22
million reported in Q1 2023.
First-quarter capacity was up 12.5 percent year over year. Second-quarter
and full-year capacity each now is expected to be at 92 percent of 2019 levels.
The full-year guidance is down from the previously projected 94 percent. The
company ended 2023 with capacity at about 84 percent recovered.
To compensate for the losses in the first quarter, Lufthansa
plans to reduce operating costs, stop new projects and assess the need for
additional staff in administration areas, according to the company.
RELATED: Lufthansa
Q4 performance
