In the first quarter of the current financial year, the Lufthansa Group was able to increase revenue from EUR 2,6 billion in the same period of the previous year to EUR 5,4 billion. The adjusted EBIT was deep red at minus 591 million euros.

The adjusted EBIT margin increased accordingly to -11,0 percent (previous year: -40,9 percent). The net loss fell to -584 million euros (previous year: -1,0 billion euros). The number of passengers on board the group airlines more than quadrupled in the first quarter compared to the same period last year. Overall, the airlines in the Lufthansa Group welcomed 13 million passengers on board between January and March (previous year: 3 million).

As a result of the sharp increase in demand for air travel over the course of the first quarter, the available capacity was also expanded significantly towards the end of the quarter. The average capacity of passenger airlines between January and March 2022 was 57 percent of the pre-crisis level (171 percent more than in the previous year).

The adjusted EBIT of the passenger airlines was EUR -1,1 billion (previous year: EUR -1,4 billion). Earnings were impacted by low flight utilization, particularly early in the quarter, rising fuel costs and the absence of short-time work relief. Average yields, on the other hand, were almost at the pre-crisis level. The level of 2019 was even exceeded on long-haul routes.

Lufthansa Cargo with new quarterly record

The positive earnings trend in the Logistics business segment continued in the first quarter of 2022. Global cargo capacity continues to be reduced due to a lack of cargo space on passenger aircraft and disruptions to global supply chains, but demand remains strong. Lufthansa Cargo benefited from this and again achieved a record result. Adjusted EBIT rose by 57 percent to EUR 495 million in the first quarter (previous year: EUR 315 million).

Lufthansa Technik's business continued to recover in the first quarter of 2022. Demand for maintenance and repair services increased as airlines around the world prepare for further market recovery in the coming months. In the first quarter of 2022, Lufthansa Technik generated a positive Adjusted EBIT of EUR 120 million (previous year: EUR 45 million). The business segment thus improved its result by 167 percent.

Due to the discontinuation of government support measures in the USA, the result of the LSG Group was below the previous year with an adjusted EBIT of -14 million euros (previous year: -8 million euros). Without this effect, the result would have improved.

“The world is currently experiencing how important understanding and partnership between peoples is. Aviation can make an important contribution to this - it enables exchange between people. Our mission to connect people, cultures and economies in a sustainable way is more relevant than ever. Air traffic restrictions have largely been overcome. We are now mentally overcoming the crisis and going on the offensive again - more focused, efficient and sustainable than before the pandemic. The past few weeks in particular have clearly shown how great the need people have to travel. New bookings are increasing from week to week - among business travelers, but especially among holiday and private trips. Logistics chains worldwide are still disrupted. As a result, demand for freight capacity remains high. Our strategic decision to further strengthen Lufthansa Cargo is now paying off all the more,” explains CEO Carsten Spohr.

At the end of March 2022, the company had liquid funds totaling EUR 9,9 billion at its disposal. This means that liquidity is still above the target corridor of EUR 6 to 8 billion. This does not yet take into account the conclusion of a revolving credit line at the beginning of April, which increases the volume of available credit lines by EUR 1,3 billion. At the end of December 2021, the available liquidity of the Lufthansa Group was still 9,4 billion euros.

Due to the continuing high demand in the premium segment and rising price levels, the Lufthansa Group expects that average yields in the further course of 2022 will be at least in the high single-digit percentage range above the previous year. This is expected to exceed the pre-crisis level of 2019.

The company plans to offer around 2022 percent of the pre-crisis capacity in the second quarter of 75. This should improve the result of the passenger airlines significantly. The Group believes that the positive trends in the logistics and technology segments will continue.

95 percent of pre-crisis capacity

For 2022 as a whole, the Lufthansa Group is planning an annual average capacity of around 75 percent for the passenger airlines. In summer, around 95 percent of the pre-crisis capacity is offered on European short-haul routes, and around 85 percent on the transatlantic.

Nevertheless, uncertainties remain for the further business development of the company. In view of the extreme changes in the price of kerosene in recent weeks, the development of fuel costs in particular cannot be precisely forecast for the year as a whole. The effects of the war in Ukraine and the significant rise in inflation on consumer behavior cannot be precisely predicted either. For the year as a whole, an improvement in adjusted EBIT compared to the previous year is still forecast.

“Demand has recovered faster and stronger than expected in recent weeks. The current booking status makes us confident that we can further improve our financial result in the coming quarters. We have to pass increasing costs on to our customers. In addition, the implementation of the remaining cost reduction measures amounting to a good half a billion euros will help to make our company as resilient as possible in the current environment," said Remco Steenbergen, CFO of Deutsche Lufthansa AG.

The Lufthansa figures at a glance: