Lufthansa Group has reported a net loss of €734 million for the first quarter of 2024, with strike action described as contributing around €350 million of losses to that figure.
The net loss, which was 57% greater than that reported in Q1 last year (loss of €467 million), came alongside a 5% growth in total revenues to reach €7.4 billion.
Remco Steenbergen, chief financial officer at Lufthansa Group, said: “We cannot be satisfied with the operating result for the first quarter; at more than €350 million, the various strikes had a significant impact on our result.”
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The strikes were carried out by various employees within the group as well as by employees of system partners, Lufthansa Group said.
The number of passengers in the first quarter rose by 12% compared with the same period of last year, reaching 24 million, with airlines in the group expanding their seat capacity by 12% year on year.
Load factor amounted to 79.7%, which was described as level with last year.
Bookings for the summer are 16% up on last year, with the most popular destinations including Spain, Portugal, Italy, Greece, the US, Japan and Southern Africa.
For the full year 2024, Lufthansa Group expects to achieve a capacity level of about 92% of the pre-pandemic figure recorded in 2019. The estimate has been revised down from 94%.
Steenbergen said cash flow was positive due to the continuing high demand for air travel and he added that the group had been able to further strengthen its balance sheet.
However, he said intensive work would be carried out in the coming months to compensate for the impact of rising costs.
“We have taken additional measures to this end, particularly at Lufthansa Airlines, which is significantly affected by rising personnel expenses and fees,” said Steenbergen.
The Lufthansa brand plans to “reduce operating costs, stop new projects and assess the need for additional staff in administrative areas”, according to Lufthansa Group.
Carsten Spohr, chairman of Lufthansa Group’s executive board and chief executive, said: “We are now leaving the first quarter behind us, which was mainly impacted by strikes, and are at a turning point.
“We have reached long-term wage agreements for the majority of our employees. This means planning certainty and clarity for the coming years.
“We are still seeing strong demand, which is even significantly higher than last year for the summer.
“We are therefore continuing to expand our offering and are growing on long-haul routes in particular.
“Our planes remain well filled throughout. One thing is already clear: it will be another very strong summer.
“I am particularly pleased that we are continuing to see a positive trend not only among leisure but also business travellers.
“We are now devoting all our energy to further expanding our premium customer offers and ensuring punctual and reliable flight operations.”
Among Lufthansa Group’s subsidiaries are Austrian Airlines, Brussels Airlines, Swiss International Air Lines, Discover Airlines and Eurowings.