Lufthansa Earnings: Strong Revenue Growth, Weaker Profitability From Disruptions and Cost Inflation

No-moat Lufthansa reported record revenue of EUR 37.6 billion in 2024, up 6% year on year driven by increased capacity, but profitability weakened as adjusted EBIT declined to EUR 1.6 billion (4.4% margin versus 7.6% in 2023). Profitability was affected by EUR 450 million in strike-related costs, industry-wide capacity expansion that pressured yields (2.6% decline year on year), and rising operational costs in Germany, including labor and flight compensation expenses. Delayed aircraft deliveries further weighed on efficiency, requiring older aircraft to remain in service, increasing maintenance costs.