BERLIN (Reuters) - Lufthansa's operating profit dropped by over a third in 2024, the airline said on Thursday, capping a difficult 2024 during which spiralling costs, limited airspace and delivery delays hit its profitability.

Lufthansa had last year aimed for an operating margin of 8%. The group said it reached a much lower point of 4.4%, citing among the reasons costly strikes and lower-than-usual yields due to an industry-wide increase in capacity.

Lufthansa reported adjusted earnings before interest and taxes of 1.65 billion euros ($1.78 billion), slightly above the 1.59 billion euros expected by analysts polled by LSEG for the 2024 financial year, but down from 2.68 billion for 2023.

Lufthansa has vowed to turn around its core airline, which posted an operating loss of 94 million euros in 2024, dragging on the group's overall results.

It said the restructuring programme at Lufthansa Airlines was expected to make a gross profit contribution of around 2.5 billion euros by 2028.

Referring to 2025 as a "year of transition" during which the cost-saving measures would not yet take full effect, the company said it nonetheless expected significantly higher operating profit this financial year.

It also said demand for air travel was expected to remain high, reflected in a positive trend in bookings at the start of 2025.

($1 = 0.9256 euros)