Deutsche Lufthansa Q1 Loss Widens, Revenues Rise; Sees Weak Adj. EBIT In Q2; Backs FY24 Outlook

(RTTNews) - Deutsche Lufthansa AG (DLAKY.PK) reported Tuesday that its first-quarter group loss widened from last year, mainly impacted by strikes.

The Group net loss was 734 million euros, compared to previous year's loss of 467 million euros. Loss per share was 0.61 euro, compared to loss of 0.39 euro a year ago. Operating loss or adjusted EBIT was 849 million euros, compared to previous year's loss of 273 million euros. Strikes, both by various employee groups within the Group and by employees of system partners, had a negative impact of around 350 million euros on earnings.

The Adjusted EBIT margin fell to negative 11.5 percent from last year's negative 3.9 percent.

Revenue, however, grew 5 percent to 7.39 billion euros in the first quarter from previous year's 7.02 billion euros. Traffic revenue went up 3 percent to 5.90 billion euros.

Number of passengers grew to 24 million in the first quarter.

Looking ahead for the second quarter, Lufthansa Group said its adjusted EBIT will still be below that of the previous year.

The company plans to increase available capacity in the second quarter to around 92 percent of the pre-crisis level, lower than originally planned due to further investments in operational stability and delayed aircraft deliveries.

The company expects a year-on-year decline in unit revenues or RASK in the low single-digit percentage range.

In the third quarter, capacity is to be increased further to over 95 percent of the pre-crisis level. Based on incoming bookings, the Group airlines expect RASK in the third quarter to be higher than in the previous year.

In the second half of the year, the Group's operating result is expected to be higher than in the previous year.

For fiscal 2024, the company, as announced in mid April, expects adjusted EBIT to be around 2.2 billion euros, compared to 2.68 billion euros in the previous year.

For the Passenger Airlines, a decline in RASK in the low single-digit percentage range is expected for the full year.

In line with the lower capacity in the first two quarters, Lufthansa Group now expects to achieve a capacity level of around 92 percent of the pre-crisis figure for 2019 for the full year 2024, lower than previously expected 94 percent.

The company further said its outlook for summer remains positive.

For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.