In 2016, the Lufthansa Group generated revenues of EUR 31.7 billion, a decline of 1.2 per cent on the prior-year result. Adjusted EBIT for the year amounted to EUR 1.75 billion, a decline of 3.6 per cent. This means that, as expected, earnings before strike costs of EUR 100 million came in at previous year’s level. The Adjusted EBIT margin for 2016 was 5.5 per cent, a decline of 0.2 percentage-points. EBIT for the year amounted to EUR 2.3 billion, a significant improvement of EUR 599 million on 2015.
The Lufthansa Group invested EUR 2.2 billion in 2016, some EUR 300 million less than originally planned. The total investment volume was thus 13 per cent down on the prior-year period, owing largely to delays in new aircraft deliveries. As a result, free cash flow increased by 36.5 per cent to EUR 1.1 billion. Net indebtedness was reduced significantly by 19 per cent. Based on earnings after cost of capital (EACC), the Lufthansa Group created value of EUR 817 million last year. Despite the structural benefits of the new collective labor agreement with the company’s cabin personnel, pension provisions rose 26 per cent to EUR 8.4 billion, owing to a decline in actuarial discount rates.
The Passenger Airline Group exceeded the already good result of the previous year and reported an Adjusted EBIT for 2016 of over EUR 1.5 billion. The Adjusted EBIT margin was 6.4 per cent. Lufthansa Passenger Airlines raised its Adjusted EBIT by EUR 254 million to over EUR 1.1 billion. Austrian Airlines again contributed positively to earnings with an Adjusted EBIT of EUR 58 million (a EUR 6 million improvement on 2015). And SWISS, while falling slightly short of its very good prior-year result, remained the Group’s most profitable airline with an Adjusted EBIT margin of 9.3 per cent. Eurowings reported an Adjusted EBIT of EUR -91 million. More than half of the shortcomings can be attributed to start-up costs and other non-recurring expenditures.
Lufthansa Technik reported an Adjusted EBIT of EUR 411 million for 2016 (down EUR 43 million) and an Adjusted EBIT margin of 8.0 per cent. LSG achieved an Adjusted EBIT of EUR 104 million (up EUR 5 million) and a stable Adjusted EBIT margin despite its extensive restructuring activities and a dynamic market environment. Lufthansa Cargo suffered a EUR 50 million loss for the year. The EUR 124 million decline compared to its 2015 result was due largely to significant pricing declines in particular in the face of massive overcapacities. The “Other” segment showed a EUR 134 million better Adjusted EBIT than last year, partly due to improved exchange rate gains and losses.
Lufthansa's share capital, the shareholder structure and dividend payments in recent years. more ...