Lufthansa slashes 2024 outlook, citing strikes and capacity snags

Lufthansa slashed its 2024 earnings outlook on Monday, blaming a series of strikes and a slower than planned ramp-up of capacity, in a profit warning that sent its share price sliding by more than 4% to a five-month low. The German flag carrier now expects adjusted earnings before interest and taxes (EBIT) of E2.2b this year, it said in a statement, versus a previous forecast for stable earnings compared with its E2.68b adjusted EBIT result in 2023. Adjusted free cash flow in 2024 is expected to be at least E1b, down from the previous forecast of at least 1.5b, it added. The airline also reported a Q1 loss of E849m, against a 273m loss the previous year. "The loss was higher than expected due to various strikes ... which impacted earnings by around E350m," the statement said. The company has agreed in recent weeks to raise the pay of both its flight attendants and ground staff to end a series of labour stoppages that forced sweeping cancellations. Separate industrial action by German airport security staff has added to the company's woes. Lufthansa is also among airlines that have canceled a number of flights to and from the Middle East as tensions spike between Iran and Israel.<br/>