The Lufthansa Group has increased its total first half-year revenues by 5.2% in 2018, excluding the impact of the first-time application of the IFRS 15 accounting standard.
The Group reported total first half-year revenues amounted to €16.9 billion, broadly in line with the prior-year level. Traffic revenue for the first six months totaled €13.2 billion, which, excluding the first-time impact of IFRS 15, represents an increase of 7.0%. Adjusted EBIT – the key profit metric of Lufthansa Group – was roughly at its prior-year level at €1,008 million. Adjusted EBIT margin amounted to 6.0% (compared to 6.1% in the first half year of 2017).
Net income for the period also remained broadly stable at €677 million (prior-year period: €672 million).
The airlines’ performance was the key driver of the Group’s results in the first half year. Some 67 million passengers were carried, a new record for the period. Capacity, volumes sold and seat load factor were also all at new record highs. The biggest driver here was the Network Airlines, with both Lufthansa German Airlines and SWISS making positive earnings contributions by achieving not only higher unit revenues but above all substantial reductions in their unit costs.
First half-year fuel costs rose by EUR 216 million to €2.8 billion. The increase is attributable to both the higher volumes and a higher fuel price.
The Network Airlines’ focus on sustainable cost reductions and revenue growth was reflected in their earnings results for the first half-year period. Reported total revenues declined 3.9% to €10.7 billion. However, excluding the effect of the first-time application of IFRS 15, the Network Airlines’ total first half-year revenues increased 3.2% on the same period last year. Unit revenues (excluding currency factors) were also up 1.4%, thanks to higher load factors and improved yields, with North Atlantic and European routes seeing particularly strong customer demand. Adjusted EBIT increased by 25.6% to €951 million. And Adjusted EBIT margin improved accordingly, rising 2.1 percentage points to 8.9%.
