Deutsche Lufthansa AG: Lufthansa Group reports impact of strikes on results and adjusts full-year outlook accordingly
April 15, 2024 at 09:51 am EDT
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EQS-Ad-hoc: Deutsche Lufthansa AG / Key word(s): Change in Forecast
Deutsche Lufthansa AG: Lufthansa Group reports impact of strikes on results and adjusts full-year outlook accordingly
15-Apr-2024 / 15:49 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
On a preliminary basis, the Lufthansa Group recorded an Adjusted EBIT1 loss of EUR 849 million in the first quarter of 2024 (previous year: loss of EUR 273 million). The loss was higher than expected due to various strikes, both by different employee groups within the Group and by employees at system partners, which impacted earnings by around EUR 350 million. The Group’s Adjusted free cash flow was positive at EUR 305 million, mainly due to continued high inflows from advance ticket payments.
The Group expects that the operating result in the second quarter will be lower than in the previous year. The result for the second quarter is expected to be negatively impacted by an additional around EUR 100 million because of the effects that the now settled wage disputes, particularly at Lufthansa Airlines, had on short-term demand for travel bookings and ongoing conflicts at Austrian Airlines. In addition, the ramp-up of capacity in the second quarter is forecasted to be slightly lower than originally planned to support improvements in punctuality for the customers and because of delays in new aircraft deliveries. Overall, incoming bookings are in line with original expectations, especially for the summer holiday months, supporting the Group’s forecast for the second half of the year. In the second half of the year, the result is expected to be higher than in the previous year.
Adj. EBIT of around EUR 2.2 billion is now expected for the year as a whole (previously: stable earnings development compared to EUR 2,682 million in the previous year). Adjusted free cash flow is expected to be at least EUR 1 billion (previously: at least EUR 1.5 billion). The as yet unforeseeable effects of the recent escalation of the Middle East conflict and further geopolitical uncertainties pose risks to the Group's full year financial outlook.
The Group will provide further details on the financial outlook when it publishes its final results for the first quarter on 30 April.
1Adjusted EBIT is not an indicator according to IFRS. Information on the calculation of Adjusted EBIT is available in the Annual Report 2023 of Deutsche Lufthansa AG.
Reponsible: Dennis Weber, Head of Investor Relations, Phone +49 69 69628000
End of Inside Information
15-Apr-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com
Language:
English
Company:
Deutsche Lufthansa AG
Venloer Str. 151-153
50672 Cologne
Germany
Phone:
+49 (0)69 696 28000
Fax:
+49 (0)69 696 90990
E-mail:
investor.relations@dlh.de
Internet:
www.lufthansagroup.com/investor-relations
ISIN:
DE0008232125, DE0008232125
WKN:
823212
Indices:
MDAX
Listed:
Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover; Regulated Unofficial Market in Berlin, Tradegate Exchange
Deutsche Lufthansa AG is a Germany-based aviation company, which provides passenger and cargo air transportation services worldwide. The Company's segments include Passenger Airlines, Logistics, MRO and Catering. The Passenger Airlines segment includes Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines and Eurowings. The Logistics segment includes the airfreight container management specialist Jettainer group, the time:matters Group, which specialises in urgent shipments, the subsidiary Heyworld, which specialises in tailored solutions for the e-commerce sector, CB Customs Broker, the customs and customs clearance specialist, and the Lufthansa Groupâs 50% stake in the cargo airline AeroLogic. The MRO segment, represented by the Lufthansa Technik group, is a global provider of maintenance, repair and overhaul services for civil and commercial aircraft. The Catering segment consists of traditional catering and onboard retail along with food commerce activities.