Total revenues for the Lufthansa Group in the first quarter of 2016 declined by 0.8% to €6.9bn. Despite significantly higher passenger volumes, traffic revenue was 3.9% down, a reflection of the substantial pricing pressures faced by the Group’s passenger airlines and the cargo business. The leading financial performance indicator of the Group’s business success – its Adjusted EBIT – improved, however, by €114m to €-53m. The Group’s net income for the first quarter amounted to €-8m (Q1 2015: €425m). This is a €70m improvement on the adjusted prior-year result, since the 2015 first-quarter result included a €503m financial profit from the early conversion of the JetBlue convertible bond. First quarter cash flow from operating activities declined 21.5% to €1.1bn. This is primarily attributable to the trend towards more short-term bookings: flights are booked closer to the departure date, which leads to a later cash-in for the company. This effect should, however, even out in the coming months provided overall bookings remain at their current levels. The equity ratio declined 3.7% points to 14.5% almost entirely due to an increase of €1.5bn in pension provisions based on a reduction in actuarial interest rates.
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[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada