2015
·
Adjusted EBIT increased by 55 per cent to EUR
1.8 billion
·
Passenger airline profits doubled due to higher
revenues and lower fuel costs
·
Germanwings and Eurowings make positive
earnings contribution
·
Strong revenue and earnings growth at
Lufthansa Technik and
LSG Sky Chefs
LSG Sky Chefs
·
Dividend proposal of EUR 0.50 per share
2016
·
Adjusted EBIT expected to be slightly above
the previous year
·
Slight increase in earnings expected for
passenger airlines
·
Unit costs excluding fuel and currency impacts
to be reduced
·
Targeted expansion of Eurowings
“With the Germanwings tragedy, 2015 was an emotionally very challenging
year for the Lufthansa Group,” says Carsten Spohr, Chairman of the Executive
Board & CEO of Deutsche Lufthansa AG. “The numerous strikes were a further
burden. Nevertheless, we continued to successfully work on our Group’s future
viability. And our strategic realignment is progressing well.”
“2015 was a good year in economic terms,” Spohr continues. “The
doubling in the passenger airlines’ result is not only due to lower fuel costs,
but also to the favorable developments in our passenger volumes and to our
capacity discipline. The result also confirms that our focus on quality in both
the premium and the point-to-point segment is the right approach. And the very
good results from Lufthansa Technik and LSG Sky Chefs further affirm that the
Lufthansa Group is on the right track.”
“For 2016 we are aiming to increase our result for the Lufthansa Group again,”
Spohr adds. “We aim to enhance the profitability of our hub airlines by further
modernizing their fleets and further increasing efficiency. We will only grow capacity
where our cost structures are competitive. We will expand Eurowings substantially
and enlarge the route network. We will foster innovations in all business areas
and make travel for our customers even more pleasant and simpler through digitalization and
corresponding new offers.”
In 2015, the Lufthansa Group generated revenues of EUR 32.1 billion, a
6.8 per cent increase on the previous year. The Adjusted EBIT, the leading indicator
of economic success, increased by 55 per cent to EUR 1.8 billion. Hence, the result
sits within the forecast range defined last October, even including some EUR
100 million earnings impact as a result of strikes in the fourth quarter. With
the exception of Lufthansa Cargo, all business segments contributed to the significant
earnings improvement. The Adjusted EBIT for the Group’s passenger airlines more
than doubled, and the two biggest service companies, Lufthansa Technik and LSG
Sky Chefs, both posted double-digit percentage earnings growth.
The Lufthansa Group further improved
its financial stability in 2015. The year-end equity ratio stood at 18 per cent.
Liquidity increased, net indebtedness declined, free cash flow increased significantly
to more than EUR 800 million and Deutsche Lufthansa AG’s ratings were
confirmed. Return on capital employed (ROCE) also improved significantly to 7.7
per cent. As a result, the Lufthansa Group created value of EUR 323 million in
2015.
Earnings of the Passenger
Airline Group doubled
The Lufthansa Group’s good result is mainly attributable to the significant
increase in it’s passenger airlines’ earnings. The Adjusted EBIT of the Passenger
Airline Group amounted to EUR 1,5 billion (compared to EUR 701 million for
2014), doubling the Adjusted EBIT margin to 6.1 per cent.
The Adjusted EBIT of Lufthansa Passenger Airlines increased by 143 per
cent to EUR 970 million. Results for Eurowings (including Germanwings) are also
consolidated in these numbers. Eurowings alone (which will be reported
separately from 2016 onwards) achieved an Adjusted EBIT of EUR8 million on
revenues of EUR 1.9 billion – a performance which not only meets but exceeds
the ambitious 2015 target of a break-even for the Group’s point-to-point business.
SWISS International Air Lines achieved earnings of EUR 429 million, an increase
of 54 per cent, and an EBIT margin of 9.4 per cent. Austrian Airlines also
posted clearly positive earnings of EUR 52 million (compared to EUR 9 million
in 2014).
Cargo weaker, service companies
continue to grow
The earnings contribution of Lufthansa Cargo declined 40 per cent to
EUR 74 million. The airfreight market had seen sizeable overcapacities from the
beginning of the 2015 summer flight plan onwards, with a correspondingly negative
impact on Lufthansa Cargo’s load factors and yields. Cargo earnings were also depressed
by the strike actions at Lufthansa Passenger Airlines in the important
fourth-quarter period .Lufthansa Technik and LSG Sky Chefs continued their
growth. Excluding gains from exchange rate movements, both companies raised
their revenues by almost 10 per cent. Lufthansa Technik posted earnings of EUR
454 million, up 19.5 per cent; and LSG Sky Chefs’ earnings rose 12.5 per cent to
EUR 99 million.
Dividend of EUR 0.50 per share
proposed
On 28 April 2016, the Supervisory Board and Executive Board of Deutsche
Lufthansa AG will propose to the Annual General Meeting that a dividend of EUR
0.50 per share be distributed for the 2015 financial year. This would represent
a total dividend payment of EUR 232 million, which is in line with the
company’s general dividend policy.“Our dividend policy is clear and comprehensible,”
says Simone Menne, Chief Officer Finance of Deutsche Lufthansa AG. “We are
committed to making continuous dividend payments to our shareholders in the
years ahead.”
Forecast for 2016
The Lufthansa Group expects to again slightly improve its Adjusted EBIT
in 2016. The forecast does not, however, include any earnings impact from
possible strikes. Once again, the Group’s passenger
airlines are expected to be prime drivers of such earnings growth. With the
sizeable expansion of Eurowings’ long-haul operations and intensified
competition, yields are likely to decrease significantly. But cost reductions
are also expected, largely due to the low oil price, but also in the form of
lower unit costs at constant currency excluding fuel costs. “We will not be unduly
influenced by the current low fuel costs,” emphasizes CFO Simone Menne. “They
will provide a welcome tailwind for our 2016 results, too; but cost discipline
remains one of our paramount tasks. We must lower the unit costs at our hub
airlines. This is and remains the key to maintain our competitiveness.” One
major driver in this respect will be the further enhancements to the efficiency
of the aircraft fleet: this year alone, the Lufthansa Group will take delivery
of 52 new, state-of-the-arts and fuel-efficient aircraft.
Lufthansa Passenger Airlines expects to post a slightly-improved Adjusted
EBIT for 2016. SWISS International Air Lines expects its 2016 EBIT result to be
slightly down on the previous year, owing primarily to the currency situation of
the Swiss franc. Austrian Airlines again expects a significant improvement in its
earnings performance. And the Eurowings Group is expecting a slightly negative result
for the year, largely because of the present investments in its growth
activities.
Lufthansa Cargo expects to report slightly improved earnings for 2016.
With growing pricing pressure and costs for growth projects, Lufthansa Technik anticipates
a significant decline in its earnings for the year owing to increasing cost
pressure and costs for growth projects. And LSG Sky Chefs also expects a slight
decline in earnings, as a result of the expenditure required to realign its
business model. The Group’s other segments are likely to post significantly
better results compared to the previous year.
“We will consistently press ahead with the further development of the Lufthansa
Group throughout 2016,” says Carsten Spohr. “The Lufthansa Group stands on
three strong pillars now: Europe’s leading hub airline system, the leading
point-to-point airline in our home markets, and the world’s strongest aviation
service companies. This all gives us more strategic options than any other
aviation group. That is a strong starting point from which to benefit in a wide
range of ways from the future growth of the global air transport sector. As
long as we can further align our cost structures to market levels, the Lufthansa
Group has great prospects in all its business segments.”
The
Lufthansa Group
|
January - December
|
Change
|
4th
Quarter
|
|||
2015
|
2014
|
2015
|
2014
|
|||
Total revenue
|
EUR m
|
32,056
|
30,011
|
+ 6.8%
|
7,752
|
7,387
|
of which traffic revenue
|
EUR m
|
25,322
|
24,388
|
+ 3.8%
|
5,935
|
5,928
|
EBIT1)
|
EUR m
|
1,676
|
1,000
|
+ 67.6%
|
13
|
-48
|
Adjusted EBIT
|
EUR m
|
1,817
|
1,171
|
+ 55.2%
|
124
|
183
|
Adjusted EBIT margin
|
5.7%
|
3.9%
|
+ 1.8pts.
|
1.6
|
2.5
|
|
Net profit for the year
|
EUR m
|
1,698
|
55
|
+
2,987.3%
|
-50
|
-427
|
Capital expenditure
|
EUR m
|
2,569
|
2,777
|
- 7.5%
|
||
Cash flow from operating
activities
|
EUR m
|
3,393
|
1,977
|
+ 71.6%
|
||
Employees as of 31 December
|
120,652
|
118,781
|
+ 1,871
|
|||
Earnings per share
|
EUR
|
3.67
|
0.12
|
+
2,958.3%
|
-0.11
|
-0.93
|
1) Prior-year result restated to reflect revised reporting principles.
The 2015 Annual Report of Deutsche Lufthansa AG will
be published simultaneously with this media release at www.lufthansagroup.com/investor-relations
at 07:30am CET on Thursday 17 March. Our Annual Results Media Conference will
be held at 11:00am CET, and will be broadcast live online at www.lufthansagroup.com.
