logo
Plus   Neg
Share
Email

Lufthansa Comments On 2020 Outlook; 2019 Net Profit Declines - Quick Facts

Lufthansa AG (DLAKF,DLAKY) said, for fiscal 2020, the magnitude of the expected decline in adjusted EBIT is currently not predictable. The Lufthansa Executive Board has decided to waive 20 percent of its basic remuneration in 2020. To counter Corona crisis, the company plans comprehensive savings measures including: far-reaching capacity reductions, "short-time working" mechanism in home markets and suspension of dividend.

Carsten Spohr, Chairman of the Executive Board, said: "We have to counter this extraordinary situation with drastic and sometimes painful measures. The longer this crisis lasts, the more likely it is that the future of aviation cannot be guaranteed without state aid."

For fiscal 2019, Lufthansa reported that its consolidated net profit declined 44 percent to 1.2 billion euros. Adjusted EBIT margin was 5.6 percent compared to 8.0 percent. Adjusted EBIT was at 2.0 billion euros. The company said the main drivers for the decline were a 600 million euro increase in fuel costs and a noticeable economic slowdown, especially in home markets.

Fiscal 2019 revenue rose by 2.5 percent to 36.4 billion euros. Unit revenues of the passenger airlines declined by 2.5 percent, adjusted for exchange rate effects.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Billionaire Warren Buffett's Berkshire Hathaway reported a profit for the second-quarter that increased 87 percent from last year, as the value of its investment portfolio increased with the stock market. But it took about $10 billion write down on the value of its Precision Castparts aircraft parts unit due to the impact of the COVID-19 pandemic. Operating profit declined 10 percent. Twitter has had preliminary talks with TikTok's Chinese owner ByteDance to buy the U.S. operations of the video-sharing app, the Wall Street Journal reported citing people familiar with the matter. Meanwhile, Microsoft has been the only company so far to say publicly it is pursuing TikTok. Pfizer said Friday it reached a multi-year deal with Gilead Sciences to manufacture and supply Gilead's investigational antiviral remdesivir for COVID-19 patients.
Follow RTT