Lufthansa Group reports 9 percent decline in Q3 profits
Date
10/29/2024 8:34:33 AM
(MENAFN) The Lufthansa Group, which includes major airlines such as Lufthansa, Eurowings, Swiss, Brussels, and Austrian Airlines, reported a decline in profits for the third quarter of 2024. Despite the group's substantial reach across the European aviation market, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the July to September period came in at €1.34 billion. This represents a 9 percent decrease from the €1.46 billion reported in the same period last year, indicating challenges despite an increase in passenger traffic and revenues.
The group's quarterly revenue rose by 5 percent year-on-year, reaching €10.73 billion, driven by steady demand and an increase in passenger numbers. Lufthansa reported carrying 40 million passengers during the third quarter, an improvement over the 38.17 million transported during the same period last year. However, this revenue boost was tempered by significant cost pressures that limited profitability.
Additional headwinds arose from broader geopolitical tensions, particularly the ongoing conflict in Ukraine and the recent instability in the Middle East. These factors introduced uncertainty to Lufthansa's operational outlook and raised costs, particularly regarding fuel and security.
Consequently, Lufthansa's total profit for the third quarter declined sharply by 37 percent year-on-year, underscoring the impact of these combined challenges. As Lufthansa Group looks ahead, these developments highlight the need for careful strategic adjustments and efficient cost management to counteract external pressures and sustain profitability in a volatile market environment.
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