Q4 2024 Deutsche Lufthansa AG Earnings Call Transcript
Key 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.
- 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.
Ladies and gentlemen, welcome to the Deutsche Lufthansa Group 2024 annual results conference call and live webcast. I'm also the chorus call operator. I would like to remind you that all participants will be in a listen-only mode and the conference is being recorded. (Operator instructions)
At this time, it's my pleasure to hand over to Marc-Dominic Nettersheim, Head of Investor Relations. Please go ahead, sir.
Thank you very much. And also from my side, a very warm welcome, ladies and gentlemen to the presentation of our full year results 2024.
With me on the call today are our CEO, Carsten Spohr; and our CFO, Till Streichert. They will both present our results for last year and discuss our commercial outlook for this year. Afterwards, you will have the opportunity to ask your questions and like always, I want to ask you to limit your questions to two, so that everybody has a chance to participate in the Q&A session.
Thanks in advance
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