Lufthansa Group increases profit for 2015 significantly

In 2015, the Lufthansa Group generated revenues of €32.1bn, a 6.8% increase on the previous year. The Adjusted EBIT, the leading indicator of economic success, increased by 55% to €1.8bn. Hence, the result sits within the forecast range defined last October, even including some €100m earnings impact as a result of strikes in the fourth quarter. With the exception of Lufthansa Cargo, all business segments contributed to the significant earnings improvement. The Adjusted EBIT for the Group’s passenger airlines more than doubled, and the two biggest service companies, Lufthansa Technik and LSG SkyChefs, both posted double-digit percentage earnings growth. The Lufthansa Group further improved its financial stability in 2015. The year-end equity ratio stood at 18%. Liquidity increased, net indebtedness declined, free cash flow increased significantly to more than €800m and Deutsche Lufthansa AG’s ratings were confirmed. Return on capital employed (ROCE) also improved significantly to 7.7%. As a result, the Lufthansa Group created value of €323m in 2015. The Lufthansa Group’s good result is mainly attributable to the significant increase in its passenger airlines’ earnings. The Adjusted EBIT of the Passenger Airline Group amounted to €1,5bn (compared to €701m for 2014), doubling the Adjusted EBIT margin to 6.1%. The Adjusted EBIT of Lufthansa Passenger Airlines increased by 143% to €970m. Results for Eurowings (including Germanwings) are also consolidated in these numbers. Eurowings alone (which will be reported separately from 2016 onwards) achieved an Adjusted EBIT of €8m on revenues of €1.9bn – a performance which not only meets but exceeds the ambitious 2015 target of a break-even for the Group’s point-to-point business. SWISS International Air Lines achieved earnings of €429m, an increase of 54%, and an EBIT margin of 9.4%. Austrian Airlines also posted clearly positive earnings of €52m (compared to €9m in 2014).