Lufthansa announced a downward revision to its full-year earnings outlook for 2024 on Monday, citing a series of strikes and a slower-than-anticipated increase in capacity. The profit warning prompted a 2.4 per cent decline in its share price.

The German airline now expects adjusted earnings before interest and taxes (EBIT) of 2.2 billion euros for the current year. This marks a departure from its previous forecast of stable earnings development, compared to the 2.682 billion euro adjusted EBIT recorded in 2023, the company stated in a press release.

Furthermore, Lufthansa revised its projection for adjusted free cash flow in 2024 to at least 1 billion euros, down from the earlier forecast of at least 1.5 billion euros.

In addition to the earnings forecast adjustment, Lufthansa reported a first-quarter loss of 849 million euros, a notable increase from the 273-million-euro loss incurred in the same period the previous year.

"The loss exceeded expectations, primarily due to a series of strikes affecting various employee groups within the Group, as well as employees at system partners. These strikes impacted earnings by approximately EUR 350 million," the statement explained.

Lufthansa is scheduled to release its final first-quarter results on April 30.

The airline industry has faced numerous challenges in recent years, including the impact of the COVID-19 pandemic and ongoing labour disputes. Lufthansa's downward revision underscores the continued turbulence in the sector, highlighting the importance of effective management and adaptation strategies amidst evolving market conditions.

(With Reuters inputs)