German airline giant, Lufthansa, recently reduced its 2024 profit forecast and launched a “turnaround” plan for its flagship carrier due to a weak second quarter. The group now predicts an operating profit of 1.4-1.8 billion euros for the year, down from the previous estimate of 2.2 billion euros. Despite this, second-quarter profit was slightly higher than expected by analysts.
Lufthansa’s profits were impacted by poor market conditions, inefficient flight operations, and delayed aircraft delivery. The group admitted that it is increasingly challenging for Lufthansa Airlines to break even for the full year. A comprehensive turnaround programme is being implemented to address these issues.
Earnings for other passenger airlines and businesses within the group are expected to remain stable or increase. The financial outlook will be revealed on July 31 alongside the second-quarter results. Lufthansa has faced challenges such as strikes over pay, impact from regional tensions, and upcoming EU climate regulations.
Despite these setbacks, Lufthansa hopes to benefit from acquiring a stake in ITA Airways and looks to bounce back from recent difficulties alongside its major European rival, Airbus-KLM.