Lufthansa cuts back on the core brand
Published: Tuesday, Oct 29th 2024, 10:10
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Despite strong demand for tickets and record sales, Lufthansa posted a fall in profits in the summer. Group CEO Carsten Spohr is now taking action at the main Lufthansa Airlines brand.
The savings program should improve the adjusted operating profit (adjusted EBIT) by 1.5 billion euros gross by 2026, as the Swiss parent company announced in Frankfurt on Tuesday. For the current year, Spohr continues to expect a Group-wide adjusted operating profit of 1.4 to 1.8 billion euros, after having cut his annual target for the second time in the summer.
In the strong third quarter, Lufthansa achieved an adjusted operating profit of 1.3 billion euros, nine percent less than a year earlier. Lower ticket prices and higher costs more than eroded the growth in revenue. The bottom line was a profit of 1.1 billion euros, eight percent less than a year earlier.
Lufthansa Airlines, in particular, generated lower profits due to a lack of new aircraft and higher personnel costs. The management therefore wants to transfer more of the brand's flights to airlines with lower operating costs within and outside the Group and automate parts of its operations to a greater extent.
©Keystone/SDA
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