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.

The group reported a net profit of 1.38 billion euros ($1.49 billion) last year, down 18 percent from 2023. Revenues came in at 37.6 billion euros, an increase of six percent from the previous year. “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.

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.

Like other airline groups, Lufthansa was hit hard when the coronavirus 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 strongly back into profit as demand roared back when lockdowns were lifted.

The worse figures for 2024 came despite an increase in passengers by seven percent to 131 million.

Upbeat outlook

Lufthansa gave an upbeat outlook for 2025, however, saying it was aiming for operating profits that were “significantly higher” than last year.

A turnaround programme launched last year for its flagship carrier, aimed at making hefty savings in the years ahead, will “lay the foundation for a sustainable increase in earnings”, it pledged.

Lufthansa faced substantial turbulence in the first half of 2024 when it was hit by a wave of strikes as workers pushed for higher pay to combat inflation.

The group’s ground staff and cabin crew staged repeated walkouts, which Lufthansa slammed as “uncompromising” and said risked “damaging our guests, the company and ultimately our employees”.

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Its problems worsened later in the year due to a string of issues, including weak market conditions and delayed aircraft deliveries.

After a poor second quarter, the group slashed its outlook for the year and launched the turnaround plan.

The Hamas-Israel war and broader tensions in the Middle East also had an impact, forcing Lufthansa on occasion to suspend flights to and from several destinations in the region.