Lufthansa reports 2023 results as ground workers go on strike
Lufthansa 2023 operating profit in line with expectations
Lufthansa will try to get as close as possible to 8 profit margin goal in 2024
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LONDONFRANKFURT, March 7 Reuters Lufthansa warned on Thursday its operating losses in the first quarter will widen and gave a subdued outlook for 2024 as the German airline struggles with costly labour disputes, offsetting the travel boom.

The airline said operating results this year would be on par with 2023, but Chief Financial Officer Remco Steenbergen said there was no hard commitment to meet a target for operating margins to hit 8 for the year. They were 7.6 in 2023.

Steenbergen said the company would try to get as close as possible to the 8 target, and would broadly keep the target even if Lufthansa doesn39;t achieve it this year.

Adjusted EBIT margins will fall to 6.9 this year from 7.6 in 2023, according to a companyprovided analyst poll.

Europe39;s airlines have benefited from unprecedented demand after the pandemic, allowing them to raise prices, but higher labour and maintenance costs have limited earnings growth.

Lufthansa in particular has agreed to new, higher pay deals to end strikes, which analysts and investors say threaten its 2024 operating margin target.

On Thursday, Lufthansa ground staff walked off the job, while on Wednesday cabin crew voted to strike as they seek a 15 wage increase, a potential harbinger of further…