Lufthansa Stock Up On Strong Q3 Results; Backs Outlook
Shares of Deutsche Lufthansa AG were gaining around 8 percent in the morning trading in Germany after the company reported higher third-quarter profit and revenues amid continued strong demand for air travel.
Looking ahead for the fourth quarter, the German flag carrier said it expects to achieve a positive operating result, and to increase its capacity to around 91 percent of its 2019 level. The fourth-quarter booking volumes show double-digit percentage growth.
Further, profit outlook for 2023 and 2024 confirmed, noting that the firm expects the demand for air travel to remain strong in the coming months. The very good summer demand has extended into October, and demand for air travel during the Christmas season is strong.
The company continues to expect to generate an adjusted EBIT for 2023 of more than 2.6 billion euros.
For 2024, the company continues to expect adjusted EBIT margin to reach at least 8 percent, and an increase of capacity to around 95 percent of pre-crisis levels.
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said, “… the highest revenue and profit ever achieved in one summer – including an operating profit of 1.5 billion euros in the third quarter alone. All airlines in our Group and Lufthansa Technik contributed to this with double-digit profit margins. At the same time, employee satisfaction in our company has improved significantly to the pre-crisis record level….. Even though the geopolitical situation remains challenging, our booking outlook gives us reason to be positive – not only for a very good Group result this year, but also beyond.”
In its third quarter, net income increased 47 percent to 1.19 billion euros from previous year’s 809 million euros. Earnings per share were 1 euro, up from 0.68 euro a year ago.
Adjusted EBIT was 1.47 billion euros in the third quarter, the second-best quarterly result in its history and a 31 percent improvement from last year’s 1.12 billion euros.
The Adjusted EBIT margin amounted to 14.3 percent, up from previous year’s 11.8 percent. In the quarter, all Group airlines reported double-digit adjusted EBIT margins.
Total Group revenues increased 8 percent to 10.28 billion euros from previous year’s 9.54 billion euros. This is the strongest quarter in its history in revenue terms.
Passenger airlines carried 38 million travelers in the quarter, higher than prior year’s 33 million.
In Germany, Lufthansa shares were trading at 7.07 euros, up 7.58 percent.
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