GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share
Results for 2017
  • Adjusted EBIT increased around 70 percent to some EUR 3 billion
  • Adjusted EBIT margin raised 2.9 percentage points to 8.4 percent
  • Earnings growth primarily driven by the Group's airlines (including cargo)
  • Revenues up 12.4 percent to EUR 35.6 billion
  • Unit costs further reduced
  • 60 percent higher dividend proposed at EUR 0.80 per share
Outlook for 2018
  • Stable unit revenue development expected
  • Unit costs to be further reduced by 1 to 2 percent
  • Higher fuel costs of some EUR 700 million expected to be largely compensated by improved operating performance
  • Adjusted EBIT for the year expected to be only slightly below its record in
  • 2017
“Our endeavors of the past few years are paying off. Our modernization has a sustainable impact. We have achieved the best result in the history of our company. 2017 was a very good year for our customers, our employees and our shareholders,” says Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. “Last year we were able to reduce costs again, while at the same time becoming the first – and the only – airline in Europe to be awarded a five-star rating. We arelowering our costs where this does not affect the customer, and are simultaneously further investing in our product and service quality.”
 
Total revenues for the Lufthansa Group in 2017 amounted to EUR 35.6 billion, a 12.4 percent increase on the previous year. The Adjusted EBIT of EUR 2.97 billion was a significant 69.7 percent year-on-year improvement. And the 8.4 percent Adjusted EBIT margin was up 2.9 percentage points compared to previous year. EBIT for the year increased more than EUR 1 billion to EUR 3.3 billion. The strong increase of EBIT includes the positive EUR 582 million one-off effect from agreeing on the collective labor agreement with the Vereinigung Cockpit union for the pilots of Lufthansa, Lufthansa Cargo and Germanwings, which was recognized in the income statement in December.
 
“We are particularly pleased that we were again able to lower our passenger airlines' unit costs excluding fuel and currency factors last year. This is in particular as passenger related costs were actually up due to higher load factors, the variable remuneration was higher in light of strong result development, and additional costs because of compensation paid for the flight cancellations at Air Berlin burdened our cost as well,” adds Ulrik Svensson, Chief Financial Officer of Deutsche Lufthansa AG. “Excluding these one-off effects, we reduced our unit costs by 1.8 percent.”
 
The Lufthansa Group invested some EUR 3 billion in 2017, around a third more than in the previous year. This is partly due to investments of some EUR 900 million into aircraft from the Air Berlin flight operations. “These higher investments also reflect the increased size of our Group. But investments relative to revenue remain on one level with the world's most successful airlines',” comments Ulrik Svensson.
 
“Important is that the return on capital continues to increase. In 2017, our Adjusted ROCE (after tax) improved by 4.6 percentage points to 11.6 percent.”
 
Despite the higher capital expenditure, free cash flow almost doubled in 2017 to EUR 2.3 billion. Net financial debt rose 6.8 percent to EUR 2.9 billion. This figure includes an initial EUR 1.7 billion funding for the new defined contributions model of the flight attendants' pension fund. Total pension provisions decreased by EUR 3.2 billion in 2017. The year-end equity ratio stood at 26.5 percent, an increase of 5.9
percentage points.
 
“On the basis of these very good results, we propose a dividend of EUR 0.80 per share to the Annual General Meeting,” says Ulrik Svensson. “This is a 60 percent increase of the pay-out compared to last year. This is the minimum level of dividend payment that we aim to maintain in the coming years.”
 
Network Airlines
The Group's Network Airlines – Lufthansa, SWISS and Austrian Airlines – increased their Adjusted EBIT by nearly 50 percent to some EUR 2.3 billion. With strong demand and a positive pricing environment, the Network Airlines raised their EBIT margin 2.6 percentage points to almost ten percent.
 
Point-to-Point Airlines
Despite the significant expenses in the context of acquiring capacities from Air Berlin, Eurowings reduced its unit costs excluding fuel and currency factors by 6.5 percent. On the back of this and strong market demand, Adjusted EBIT increased by some EUR 200 million. Despite adverse one-off factors related to market consolidation, the Group's Point-to-Point Airlines improved their Adjusted EBIT margin by 7.3 percentage points and achieved a positive Adjusted EBIT of around EUR 100 million. The inorganic growth after the insolvency of Air Berlin will make a positive contribution to the Point-to-Point Airlines' from 2019 onwards.
 
Aviation Services
The Group's Aviation Services in total achieved a very good result, though the development among the business segments was quite different. A combination of
cost reductions and strong demand helped Lufthansa Cargo to improve its Adjusted EBIT by almost EUR 300 million to EUR 242 million. The EUR 415 million earnings of Lufthansa Technik were broadly in line with prior-year levels. Against the background of the continuing transformation of its European operations, the LSG Group sustained a EUR 38 million decline in its earnings for the year to EUR 66 million.
 
Outlook
EUR 700 million higher fuel costs can be largely offset by an improved operating performance, so that for 2018 in total an Adjusted EBIT only slightly below previous year is expected. Organic capacity is expected to increase by some seven percent, as unit revenues excluding currency factors should remain broadly stable. Unit costs excluding fuel and currency factors should be further reduced by 1 to 2 percent.
 
“We will continue to consistently pursue our modernization,” concludes Carsten Spohr. “And in doing so, we will retain our clear focus on reducing our costs and at the same time raising our quality. This is the only way to sustainably increase our profitability. From a position of strength, we will continue to drive consolidation in Europe.”
 
Lufthansa Group    January to December 4th Quarter
2017  2016 Change  2017   2016 Change
Total revenues EUR m  35,579 31,660  +12.4% 8,818  7,790 +13.2%
of which traffic revenue EUR m 28,399 24,661 +15.2% 7,039 5,987 +17.6%
EBIT EURm  3,310 2,275 +45.5% 875 -55  
Adjusted EBIT EUR m 2,973  1,752   +69.7% 413 75
+450.7%
Adjusted EBIT margin    8.4% 5.5% +2.9pts  4.7%  1.0%  +3.7 pts
Adjusted ROCE (after taxes)    11.6% 7.0% +4.6pts      
Net income  EUR m  2,364 1,776 +33.1% 511 -75  
Capital expenditure  EUR m  3,005  2,236 +34.4% 1,203 602 +99.8%
Operating cash flow EUR m  5,035 3,246  +55.1%  576  192  +200.0
%
Employees as of 31.12   129,424 124,306  +5,118      
Earnings per share EUR  5.03   3.81 +32.0% 1.09  -0.16  
 



Posted by : GoDubai Editorial Team
Viewed 9992 times
Posted on : Thursday, March 15, 2018  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : IATA Innovates Dangerous Goods Handling
Next Story : Turkish Airlines Closes Airbus and Boeing Orders
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
COLAB - Dry Shampoo
Timeless Ties
ORANGE & BERGAMOT Awaken the Cult Icon New Additions
FOREO delivers the ultimate festival survival kit for a glow-on-the-go.
The Perfect Gift Mark
New XE 300 Sport Edition Wins Gripping Ice Race
Get Vibrant and lively hair with Rahua's new Color Full Range
Filorga Mesotherapist Derma Roller
Palladio Beauty - a Professional Line of Botanical & Vitamin-Infused Cosmetics
Samsung launches Exciting Smartphone Trade-In Program with Galaxy S9 or S9+
Enhance skin radiance, smoothness and brightness in just 14 days, with the new J...
Summertime Beauty Picks at Glambeaute.com
Spring/Summer 18 Collection
du to Offer New 9.7-inch iPad With Apple Pencil Support
Skyline University College Economics Day 2018: One Step towards Tomorrow
Dubai-based Al Kasir Group launches three Crypto assets backed by diamonds
OPPO unleashes the new Selfie Expert F7 with a 25 MP AI powered selfie camera
New Blow Out Bar and Make-Up Studio SWISH by Immaclife Opens in Abu Dhabi in Apr...
Penny Scallan Design Launches in the Middle East
Pandora Shine Discover A New Way to Shine
Dubai Sports Council Pavilion a big hit at Bangkok SportAccord
A Royal Ramadan Experience by Master Chef Mama in Pullman Dubai Creek City Centre
Stylish Nursing wear at Mums and Bumps
Rolling Cones, a new luxury ice cream concept, launches at the Hyatt Regency Dub...
Pinky Goat Launches BROWME
MINI at Auto China Beijing 2018
The new BMW M2 Competition
Mumzworld Announce Recruitment Drive To Empower Women in the Middle East
Gifts for Ramadan at Hour Choice
Abu Dhabi Ship Building Company Launches Two 64-Meter Landing Ships for the Kuwa...
Toshiba Releases New, Powerful Surveillance and Video Streaming Internal Consume...
Sheikh Sultan bin Ahmed Al Qasimi Leads Sharjah Contingent to Kuwait Arab Media Forum
Exclusive, Limited‐Edition, Swiss‐Made Cryptocurrency Watches
Roger Dubuis Excalibur Aventador S Verde Mantis
10 Kg gold for 100 winners at Malabar Gold & Diamonds
Mido Ramadan Watch Collection
Olivia Burton Marble Florals - Embrace these styles for a new artistic way to wo...
Etihad Aviation Group Launches Four Initiatives To Commemorate The Year Of Zayed
The Beautiful Britain 2018
Pandora Spring Embrace Nature's Beauty
Genesis G70 Luxury Sedan Arrives in Middle East
Understanding what women want Balmain reveals the Madrigal Mini II
Big Time with Graham Chronofighter Grand Vintage
Adamavi - Elegant, Timeles S, and Reliable
Airport Show Attracts Influential Aviation Leaders for Global Airport Leaders Fo...
Huawei Brings the Most Coveted Smartphone - HUAWEI P20 Pro to the UAE
SUC Organized 10-Day Free IELTS Workshop for School Teachers and Students
April Marks Autism Awareness Month at Nursery Chain
Samsung Launches New Washing Machine with Groundbreaking QuickDrive™ Technology ...
Tommy Fleetwood joins OMEGA's line-up of golfing greats