Lufthansa Group announced (27-Oct-2010) the group registered a 24.9% year-on-year increase in revenue to EUR20,200 million and an improvement in operating profit of EUR612 million in the nine months ended 30-Sep-2010. The group also reported a net profit of EUR524 million, up from the EUR31 million registered in the previous corresponding period. Lufthansa's Executive Board also revised its expectations for the earnings development upwards and now anticipates that the operating result for the full year will exceed the EUR800 million mark, in view of the course of business to date and current stable demand. The carrier is scheduled to release its full 3Q2010 results on 28-Oct-2010. [more]
Lufthansa Group revenue up 24.9% for nine months ended Sep-2010
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Collectively, these 15 groups enjoyed an improvement in operating margin in 1H2016 versus 1H2015. This was achieved in spite of heavy downward pressure on unit revenue – thanks largely to lower fuel prices, which allowed them to cut unit costs more rapidly. However, there was a wider range of levels of profitability in the individual results compared with last year.
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Lufthansa still Number 2 vs IAG & Air France-KLM. Soft RASK justifies more ASK trimming for all
Lufthansa Group's detailed 2Q2016 results confirmed the headline numbers that it pre-released with a profit warning on 20-Jul-2016. After increasing its operating profit in 1Q, the group suffered a decline in 2Q. Among Europe's big three legacy airline groups, Lufthansa was the only one to report lower 2Q profits. In 1H2016, IAG again has the best operating margin of the three, followed by Lufthansa and then Air France-KLM. However, LCCs Ryanair and Wizz Air are more profitable than any of them.
Lufthansa's full 2Q report provides an opportunity to compare the capacity growth and unit revenue performance of each of the Lufthansa Group, Air France-KLM and IAG for 2Q2016. Unit revenue has been soft for some time for all three, but seems to be weakening further. Lufthansa cautioned that advance bookings, especially on long-haul, have declined significantly, citing repeated terrorist attacks in Europe and greater political and economic uncertainty.
Against this backdrop, IAG and Lufthansa have reduced their capacity growth plans, while Air France-KLM has retained its 1% ASK growth outlook for its network airlines. CAPA's analysis highlights the inverse relationship between capacity growth and RASK growth. Further capacity haircuts may follow.