Don't miss out! Join Legit.ng's Sports News channel on WhatsApp now! German airline giant Lufthansa said Thursday its 2024 profits dived during a turbulent year marked by strikes, rising costs and delays in aircraft deliveries, but vowed a turnaround plan will boost earnings this year. European rival Air France-KLM also reported a big drop in its annual net income as some tourists avoided Paris during the Olympic Games last summer.
Lufthansa reported a net profit of 1.38 billion euros ($1.49 billion) last year, down 18 percent from 2023.
Revenue rose slightly to 37.6 billion euros. "Strikes weighed on the passenger airlines," Lufthansa said in a statement.
It also pointed to problems caused by "significantly higher costs, especially in Germany" as well as "further delays in aircraft deliveries". The result was nevertheless better than a forecast of just over one billion euros by analysts surveyed by the financial data firm FactSet. PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app! It came after a two-year streak of improving earnings for one of Europe's biggest aviation groups, whose carriers include Lufthansa, Eurowings, Austrian, Swiss and Brussels Airlines.
Read also Asian stocks rebound on China stimulus package Like other airline groups, Lufthansa was hit hard when the Covid pandemic shut down global air travel and it had to be bailed out by the German government in 2020. It recorded two years of losses before flying stro.