Lufthansa Group reports good results for 2016

The Lufthansa Group generated revenues of €31.7bn in 2016, a decline of 1.2% on the prior-year result. Adjusted EBIT for the year amounted to €1.7bn, a decline of 3.6%. This means that, as expected, earnings before strike costs of €100m came in at previous year’s level. The Adjusted EBIT margin for 2016 was 5.5%, a decline of 0.2 percentage-points.
EBIT for the year amounted to €2.3bn, a significant improvement of €599m on 2015. The difference between the EBIT and Adjusted EBIT is largely attributable to the new collective labor agreement concluded between Lufthansa and its flight attendants’ union UFO. The agreed switch from a defined benefit in a defined contribution pension system had a €652m positive impact on EBIT for the year which is not included in the Adjusted EBIT. But even without this non-recurring item, the Lufthansa Group further enhanced its financial strength in 2016, achieving a further 2.5% reduction in its unit costs excluding fuel and currency effects.