European airline conglomerate Lufthansa Group has released its earnings for the first quarter of 2024, reporting a sizable €849 million ($908 million) operating loss fueled in part by crippling airline worker strikes. 

According to Reuters, Lufthansa reached a new deal with the union for 25,000 ground staff on March 27, but not before strikes forced the cancellation of thousands of flights in the prior weeks. Lufthansa estimates that alone impacted first quarter earnings by roughly €350 million, as well as another projected €100 million in Q2. To account for those losses, the company plans to cut down on operating costs, halt new projects, and look at potential administration staffing reductions. 

"We cannot be satisfied with the operating result for the first quarter," Lufthansa Group chief financial officer Remco Steenbergen said. "In the coming months, we will work intensively to compensate for the effects of rising costs."

Additional Q1 losses were attributed to lower cargo volumes "now that the logistics industry has returned to normal after the pandemic-related exceptional economic situation," Lufthansa said in its report. 

Lufthansa said that global demand for flights is still strong, and expects a "very good summer of travel" with summer bookings up 16% year-over-year. Air travel demand also rose by 12% in Q1 compared to the same period in 2023.