Lufthansa reports sharp increases in revenue for 2015

14
17th Mar 2016
Lufthansa reports sharp increases in revenue for 2015

The Lufthansa Group generated revenues of €32.1 billion, a 6.8 per cent increase on the previous year.

Adjusted EBIT at the airline also increased by 55 per cent, to €1.8 billion.

The results sit within the forecast range defined last October, even including some €100 million 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.

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.

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“With the Germanwings tragedy, 2015 was an emotionally very challenging year for the Lufthansa Group,” said Carsten Spohr, chairman Deutsche Lufthansa AG.

“The numerous strikes were a further burden.

“Nevertheless, we continued to successfully work on our group’s future viability.

“And our strategic realignment is progressing well.”

“Last year was a good year in economic terms,” Spohr continued.

“The doubling in the passenger airlines’ result is not only due to lower fuel costs, but also to the favourable developments in our passenger volumes and to our capacity discipline.

“The result also confirms that our focus on quality in both the premium and the point-to-point segment is the right approach.”

The Lufthansa Group further improved its financial stability in 2015.

The year-end equity ratio stood at 18 per cent.

Liquidity increased, net indebtedness declined, free cash flow increased significantly to more than €800 million and Deutsche Lufthansa AG’s ratings were confirmed.

Return on capital employed also improved significantly to 7.7 per cent.

As a result, the Lufthansa Group created value of €323 million in 2015.   

“For 2016 we are aiming to increase our result for the Lufthansa Group again,” Spohr added.

“We aim to enhance the profitability of our hub airlines by further modernising their fleets and further increasing efficiency.

“We will only grow capacity where our cost structures are competitive.

“We will expand Eurowings substantially and enlarge the route network.

“We will foster innovations in all business areas and make travel for our customers even more pleasant and simpler through digitalization and corresponding new offers.”

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