The Executive Board of Deutsche Lufthansa AG has decided to propose to the Annual General Meeting that the dividend payment for the financial year 2019 be suspended.
Lufthansa Group closed the year 2019 with an adjusted EBIT of €2,026 million (US$2,269 million). The adjusted EBIT margin was 5.6%, within the range of the 5.5% to 6.5% forecast given in June 2019.
The spread of the coronavirus is having a major impact on global demand for air travel. This includes travel restrictions for passengers originating from the European Union imposed by the U.S. authorities. Over the course of the last week, new bookings at the Group airlines were around 50% lower, compared to the same time last year. Furthermore, the airlines are recording a significant increase in the number of flight cancellations.
Over the next few weeks, the flight schedule may be reduced further, by up to 70%, compared to the original plan. The Group is also reducing material and project costs, intends to implement reduced working hours, and is negotiating the postponement of planned investments.
Despite these countermeasures, the Group expects Adjusted EBIT in 2020 to be significantly below the prior-year result.
