Lufthansa Group result one of the best ever despite tough challenges
28 / 04 / 2016
Looking back at its 2015 performance during its annual general meeting (AGM), the Lufthansa Group said that the adjusted earnings before interest and tax (EBIT) of €1.8bn and net profit of €1.7bn it made on revenue of €32.1bn during the year represented one of the best group results in the company’s history.
They were also according to projections, the carrier added.
Carsten Spohr, chairman of the Executive Board & CEO of Deutsche Lufthansa AG, pointed out: “2015 was our toughest year in emotional terms, and at the same time one of the most successful in our corporate history.”
Moreover, the airline continues to look forward. “After safety, future viability is and remains our paramount objective,” Spohr continued. “And we made a lot of progress here.”
Lufthansa had revealed its 2015 results in mid-March, complete with a forecast for the rest of this year.
While its three network carriers, Lufthansa, SWISS and Austrian Airlines, continue to offer what Lufthansa describes as enhanced products, reorganisation of their commercial, operational and administrative processes are expected to deliver annual savings of €500mn from 2019 onwards.
However, further cost reductions will still be required, especially at Lufthansa German Airlines, a group statement noted.
Eurowings is also being further developed as a second group brand.
New aircraft joining the fleet will help the group to become more efficient. The Lufthansa Group will take delivery of 52 new aircraft in 2016 alone.
“The changes will continue, in our industry and at Lufthansa,” Spohr predicts.
“We’re optimistic, though. We’re on a good track; and our current successes confirm to us that we should keep consistently to it as we continue to develop the Lufthansa Group.”
While the Lufthansa Group results for 2015 may have been well-received, the same can’t be said for those of Lufthansa Cargo.
The freight division’s EBIT fell by 40% year-on-year on the back of weakening global cargo markets.
Nevertheless, chairman and CEO Peter Gerber insisted that he would persevere with the Lufthansa Cargo 2020 strategy intended to improve efficiency.
“We have set the right course, and the first plants of Lufthansa Cargo 2020 are starting to bear fruit,” he said back in March.
Lufthansa postpones Brussels Airlines option
In other news, Lufthansa and Brussels Airlines have agreed to extend by a further three months the deadline for the German flag-carrier to decide on its call option to fully acquire Brussels Airlines’ parent company SN Airholding.
Under an agreement reached between the two, Lufthansa had been required to decide whether it will acquire the remaining 55% of SN Airholding by the beginning of June. This deadline has now been extended to the end of August.
The option has been extended in the wake of the terrorist attacks at Brussels Airport on 22 March. “Our colleagues at Brussels Airlines are currently devoting all their energies and resources to restoring reliable flight operations for their customers at their home airport following these terrible attacks,” notes Spohr.
“That is a major challenge under the current security provisions, and must now be the priority. And in view of this, we have agreed with Brussels Airlines to give ourselves a further three months to conclude our negotiations on the acquisition terms and devise the migration concept required.”