Lufthansa reports improved H1 results
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The Lufthansa Group has reported improved results across its key operating segments for the first half of 2015.
Adjusted EBIT rose by EUR 290m year-on-year to EUR 468m. For the six months ended 30 June, sales increased by 8.5 percent to EUR 15.4bn, with traffic revenue accounting for EUR 12.1bn of that figure.
Yields for the group’s passenger airlines rose by 2.4 percent in the first half of 2015, which was mainly exchange rate related.
The group’s net result for the first six months of the year rose to EUR 954m, compared with a net loss of EUR 79m for the same period in the prior year. In addition to a higher operating result, this is mainly due to the increase in the financial result.
More than half of the Group’s net result was attributable to an accounting effect resulting from the appreciation in equity capital of EUR 503m following the redemption of the Jet-Blue convertible bond in the first quarter. In the second quarter, assessments of interest and exchange rate hedging instruments as well as fuel hedging options had a positive impact, increasing the result by a total of EUR 176m.
Simone Menne, chairman of the Financial and Aviation services of Deutsche Lufthansa AG said: “Our first-half results are solid. Aside from the positive development of our business operating areas and, in particular, our passenger airlines, which gained extra momentum in the second quarter, the fall in fuel costs is largely responsible for the improvement in our results. We will, however, not be misled by that, since we assume that the price level for airline tickets will not recover. We will therefore continue to work consistently on the competitive focus of the Lufthansa Group.
“Our strategic focus is right. On the one hand, our premium brands – Lufthansa and SWISS – are very successful, and at the same time Germanwings and Eurowings are also showing good business developments as secondary brands. We are focusing on the premium quality of our hub airlines and the high level of competitiveness of our secondary brands in point-to-point traffic. This approach makes us profitable and fit for the future within the airline market.”
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