Annual Results 2017

Lufthansa Group achieves best result in its history

“Our endeavors of the past few years are paying off. Our modernization has a sustainable impact. We have achieved the best result in the history of our company. 2017 was a very good year for our customers, our employees and our shareholders,” says Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. “Last year we were able to reduce costs again, while at the same time becoming the first – and the only – airline in Europe to be awarded a five-star rating. We are lowering our costs where this does not affect the customer, and are simultaneously further investing in our product and service quality.”

Total revenues for the Lufthansa Group in 2017 amounted to EUR 35.6 billion, a 12.4 percent increase on the previous year. The Adjusted EBIT of EUR 2.97 billion was a significant 69.7 percent year-on-year improvement. And the 8.4 percent Adjusted EBIT margin was up 2.9 percentage points compared to previous year. EBIT for the year increased more than EUR 1 billion to EUR 3.3 billion. The strong increase of EBIT includes the positive EUR 582 million one-off effect from agreeing on the collective labor agreement with the Vereinigung Cockpit union for the pilots of Lufthansa, Lufthansa Cargo and Germanwings, which was recognized in the income statement in December.

The Lufthansa Group invested some EUR 3 billion in 2017, around a third more than in the previous year. This is partly due to investments of some EUR 900 million into aircraft from the Air Berlin flight operations. “These higher investments also reflect the increased size of our Group. But investments relative to revenue remain on one level with the world’s most successful airlines’,” comments Ulrik Svensson. “Important is that the return on capital continues to increase. In 2017, our Adjusted ROCE (after tax) improved by 4.6 percentage points to 11.6 percent.”

 

Lufthansa Group

 

January to December

4th Quarter

2017

2016

Change

2017

2016

Change

Total revenues

EUR m

35,579

31,660

+12.4%

8,818

7,790

+13.2%

 of which traffic revenue

EUR m

28,399

24,661

+15.2%

7,039

5,987

+17.6%

EBIT

EUR m

3,310

2,275

+45.5%

875

-55

 

Adjusted EBIT

EUR m

2,973

1,752

+69.7%

413

75

+450.7%

Adjusted EBIT margin

 

8.4%

5.5%

+2.9 pts

4.7%

1.0%

+3.7 pts

Adjusted ROCE (after taxes)

 

11.6%

7.0%

+4.6 pts

 

 

 

Net income

EUR m

2,364

1,776

+33.1%

511

-75

 

Capital expenditure

EUR m

3,005

2,236

+34.4%

1,203

602

+99.8%

Operating cash flow

EUR m

5,035

3,246

+55.1%

576

192

+200.0%

Employees as of 31.12

 

129,424

124,306

+5,118

 

 

 

Earnings per share

EUR

5.03

3.81

+32.0%

1.09

-0.16