Civil Aviation
Lufthansa earnings take off in 2015
Lufthansa earnings take off in 2015
© Lufthansa

| Staff writer 276 mots

Lufthansa earnings take off in 2015

In spite of the Germanwings tragedy and numerous strikes, Lufthansa chalked up strong results for 2015. Adjusted EBIT increased by 55% to €1.8bn, and passenger airline profits doubled due to higher revenues and lower fuel costs, coupled with what CEO Carsten Spohr called “capacity discipline”.

In 2015, the group generated revenues of €32.1bn (+6.8%). Adjusted EBIT came within the forecast range defined last October, even including an estimated €100m hit from strikes in the fourth quarter. With the exception of Lufthansa Cargo, all business segments contributed to the significant earnings improvement. The two biggest service companies, Lufthansa Technik and LSG SkyChefs, both posted double-digit percentage earnings growth.

One cloud in the blue sky: the earnings contribution of Lufthansa Cargo declined 40% to €74m, due to “sizeable overcapacities from the beginning of the 2015 summer flight plan onwards”. Cargo earnings were also depressed by the strike actions at Lufthansa Passenger Airlines in the important fourth-quarter period.

The group expects to further improve Adjusted EBIT in 2016, not including any earnings impact from possible strikes. Once again, the passenger airlines are expected to be prime drivers of earnings growth. With the expansion of Eurowings’ long-haul operations and intensified competition, yields are likely to decrease significantly. But cost reductions are also expected, largely due to low oil prices, but also in the form of lower unit costs at constant currency excluding fuel costs.

CFO Simone Menne underlined that cost discipline would be key: “We must lower the unit costs at our hub airlines. This is and remains the key to maintain our competitiveness.” Fleet efficiency will be boosted by the arrival of 52 new aircraft in the coming year.

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