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Lufthansa Group Slips To Adjusted EBIT Loss In Q1 On Fuel Costs; Backs FY19 View

Deutsche Lufthansa AG (DLAKF,DLAKY) reported an adjusted earnings before interest and tax or EBIT of negative 336 million euros for the first quarter, compared to prior year's positive 52 million euros.

The adjusted EBIT loss reflected a 202 million euros rise in fuel costs, among other things. Market-wide overcapacities in Europe also put strong downward pressure on fares.

The company noted that the prior year results were particularly strong, owing to the capacity reductions deriving from Air Berlin's demise.

Unit revenues for the period were down significantly at both the Network Airlines and Eurowings.

Looking ahead for the second quarter, Lufthansa Group expects unit revenues at constant currency to increase year-on-year, based on favorable booking levels and a clear slowing of the market-wide capacity growth.

For 2019 as a whole, Lufthansa Group continues to expect to report an adjusted EBIT margin between 6.5 and 8.0 percent.

Deutsche Lufthansa will publish its detailed first-quarter results on April 30.

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