Lufthansa Group records best-ever first half results

Lufthansa Group records best-ever first half results

The Lufthansa Group increased total revenues by 12.7 per cent to €17 billion in the first six months of 2017, up from €15 billion for the same period last year.

Traffic revenues were up by 14.2 per cent to €13.3 billion.

And the key earnings indicator of adjusted EBIT was roughly doubled to over €1 billion, giving the Lufthansa Group its best-ever first half year earnings result.

The earnings performance is attributable primarily to strong demand and lower unit costs at the group’s passenger airlines.

Unit costs excluding fuel and currency effect declined by 1.2 per cent in the first half-period, and by 3.4 per cent in the second quarter alone.

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Unit revenues at constant currency were raised by 0.5 per cent, and by 1.8 per cent in the second quarter.

Load factors were up on their prior-year levels in all traffic regions, despite increased capacity.

The adjusted EBIT margin of 6.1 per cent was a 2.6-percentage-point improvement on the prior-year period.

“We have achieved the best first half-year result in our company’s history,” said Ulrik Svensson, chief financial officer of Deutsche Lufthansa AG.

“In addition to strong demand and a robust pricing environment, this is attributable to the fact that we achieved a further structural reduction in costs.

“Our hard work in cutting our costs is reaping its rewards.

“But we must continue these endeavours: this is the most important way that our margins can be improved sustainably.”

Net profit for the first half of 2017 amounted to €672 million, a 56.6 per cent improvement on the prior-year period.

Cash flow from operating activities rose more than €1 billion to €3.2 billion.

“Our key financial performance indicators have been significantly improved further,” Svensson added.

“Our free cash flow has almost doubled, and our net financial debt has been more than halved.

“Higher revenues and lower costs have enabled us to soundly finance the investments required for new aircraft and an attractive product.

“All of which is vitally important in keeping our company the number one in Europe.”