LUFTHANSA GROUP REPORTED 1.8 BILLION EURO IN LOSSES UP TO SEPTEMBER

Samuel Dorsi - Nov 7, 2021
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Lufthansa Group recorded 1.877 billion euros in losses during the first nine months of this year, 66% less than the 5.584 billion euros loss a year earlier.

Revenues remained unchanged, totaling 10.978 billion euros, of which 7.550 billion (+2%) corresponded to traffic revenues.

Net operating profit (Ebit) improved by 64% to negative 2.123 billion euros. At the end of September, the Lufthansa group’s debt reached 9 billion euros, 2% more than a year earlier. The number of employees fell by 14% to 106,684.

The company's CEO, Carsten Spohr, said that thanks to the increase in demand for business travel and the good performance of the cargo segment, the group has achieved "another milestone" by achieving a positive adjusted Ebit during the third quarter of 272 million, but that at this time "the idea is continuing the path of successful change".

During the third quarter of 2021, the capacity offered, measured in passenger-kilometers, was 50% of what existed before the crisis in 2019, approximately double the level in the second quarter. Overall, Lufthansa Group airlines carried 19.6 million passengers in July, August and September. This represents 46% of the pre-crisis level in the third quarter of 2019. The seat load factor was 68.8%, 17.4 percent higher than in Q2 2021 (-17.5 percent compared to Q3 2019).

In these three months, group revenues almost doubled (+96%) year-on-year to 5.2 billion euros. Adjusted EBIT, excluding restructuring costs of 255 million euros, was 272 million euros in the third quarter. Including these restructuring charges, adjusted EBIT amounted to 17 million euros.

For the rest of the year, the company expects the demand to develop positively. By the end of the third quarter, bookings had already reached around 80% of the 2019 levels. In the fourth quarter of 2021, the group's EBIT is expected to be positive, even assuming restructuring costs of around 80 million euros.

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