Lufthansa reports adjusted EBIT of €1,042m in the first half of 2017

Based on preliminary figures, Deutsche Lufthansa AG generated revenues of €17.0bn in the first half of 2017 (Q1 & Q2 2016 €15.0bn). The Adjusted EBIT came to €1,042m (2016 period: €529m). The passenger airlines achieved a cumulative Adjusted EBIT of €680m (2016 period: EUR 352m). Unit revenues at constant currency were up 0.5 per cent on the same period 2016 (1.8 per cent in the second quarter). Unit costs excluding fuel and currency effects fell by 1.2 per cent (-3.4 per cent in the second quarter). Cumulative Adjusted EBIT for the remaining business segments (including consolidation and reconciliation) were €362m (2016 period: €177m). Fuel costs increased by €223m compared to the same period in 2016. All performance indicators and fuel cost include the first-time consolidation of Brussels Airlines and the aircraft wet leased from Air Berlin.
At the end of the first half-year, net financial debt decreased to €1.1bn (year-end 2016: €2.7bn). Pension provisions came to €8.1bn (year-end 2016: €8.4bn) at an IFRS discount rate of 2.1 per cent (year-end 2016: 2.1 per cent).
The Executive Board of Deutsche Lufthansa AG increases their forecast for the year now from an Adjusted EBIT “slightly below previous year” to “above previous year”. The organic capacity growth in the second half-year is expected to be 4.7 per cent. From today’s perspective, unit revenues at constant currency will be negative in the second half-year compared to the same period in 2016. Unit costs excluding fuel and currency effects should come down marginally in the second half-year. The fuel cost projection (excluding consolidation of Brussels Airlines) as of 30 June 2017 indicates a tailwind of approximately €100m in the second half-year compared to the same period in 2016. The Air Berlin wet lease and the first-time consolidated Brussels Airlines should deliver a small profit. The remainder of Deutsche Lufthansa AG’s businesses are expected to deliver a cumulative profit for the second half-year of 2017, on a par with 2016.
(€1.00 = US$1.16 at time of publication.)