Wednesday 12 December 2018

Lufthansa report strong third quarter as revenue tops €9bn

Aircraft of German carrier Lufthansa stand on the tarmac at the Frankfurt am Main airport, Germany
Aircraft of German carrier Lufthansa stand on the tarmac at the Frankfurt am Main airport, Germany
Ellie Donnelly

Ellie Donnelly

German airline Lufthansa has reported adjusted earnings before interest and taxation of €1.5bn in the three months to 30 September.

Revenue for the three month period was €9.8bn, while net profit was €1.2bn.

The performance was driven by strong results in the company’s passenger airlines and logistics divisions, with the airline experiencing better load factors and yields across all brands and major regions, according to the group’s interim results.

Looking at the nine month period to 30 September, adjusted earnings before interest and taxation increased to €2.6bn, while revenues increased by €2.9bn to €26.8bn.

Read more: Profits soar 20pc at Irish Lufthansa firms

Net financial debt fell by over 80pc in the first nine months to €521m, with pension liabilities at the airline now €7.8bn.

During the third quarter trading was favourable, driven by inbound long-haul leisure demand and strong domestic markets.

Short-haul traffic was strong for all airlines in the group, especially in September, with all regions improving, in particular home markets, Asia and Europe.

According to Davy analysts, the positive impact from the Air Berlin insolvency was visible in forward bookings.

Looking at the next three months, Lufthansa said that it expects revenues for the remainder of the year to increase slightly on organic capacity growth.

In addition, the financial burden of €100m resulting from strikes in the fourth quarter of last year will not recur, the airline said.

"We achieved another record earnings result in the first nine months of this year. A result that gives us the investment and growth capabilities we need to play an active part in the consolidation of the European airline market, and to continue to invest in the future of our company," Carsten Spohr, chairman of Lufthansa, said.

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