LONDON/FRANKFURT, March 7 (Reuters) - Lufthansa

reported on Thursday an operating profit of 2.7

billion euros for 2023 as expected and said 2024 operating

results will be on par with last year as the German airline

struggles with costly labour disputes.

The impact of strikes and a drop in logistics profits

will lead to a higher expected operating loss in the first

quarter than in earlier years, the German airline said,

offsetting strong post-COVID travel demand.

"The group remains committed to its goal of generating a

sustainable adjusted EBIT margin of at least 8 percent," the

company said in a statement.

Europe'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

threatens

its 2024 operating margin target.

On Wednesday, its cabin staff

voted

to go on strike as they seek a 15% wage increase, a

potential harbinger of further profit erosion.

The results come almost two weeks after the airline

announced the

surprise

departure of respected chief financial officer Remco

Steenbergen, which knocked its share price and rattled investor

confidence.

Operating profits for 2023 were up 76% from 1.5 billion

euros ($1.63 billion) in 2022. Revenues of 35.4 billion euros

($38.58 billion) were up almost 15% over 31 billion euros

($33.79 billion) in 2022, but were lower than the 36.3 billion

euros ($39.56 billion) expected in a company-issued poll.

DIVIDEND

Despite the adjustment in operating margin target, the

company said its results were strong enough to propose issuing a

divided of 0.30 euros a share, to be voted on at the annual

general meeting on May 7.

The group has not issued a dividend since 2019.

The carrier's shares have outperformed European rival

flag carriers Air France-KLM and IAG since

early 2022 as the region's travel industry recovered from

disruption caused by the COVID-19 pandemic worldwide since 2020.

Last week, results from Air France and British Airways

owner IAG put the spotlight on challenges for the industry from

high prices of jet fuel, to geopolitical flashpoints, problems

at plane makers and wage talks.

Lufthansa shares trade at five times forecast earnings

over the next 12 months, compared to four times for IAG and

three for Air France-KLM.

($1=0.9175 euros)