Lufthansa returns to profits and generates positive cash flows again.
People’s desire to travel and the easing of pandemic-related travel restrictions led to a strong increase in demand for air travel during the summer months. At increasing load factors, the Lufthansa Group airlines were able to nearly double their capacity compared to the previous quarter. Lufthansa Cargo achieved a record result also in the third quarter.
The Lufthansa Group generated an operating profit in the third quarter of 2021 for the first time since the beginning of the crisis, despite high restructuring expenses weighing on the result. Supported by the further opening of important long-haul markets for travelers from Europe, especially the US, new bookings increased significantly. At present, new bookings have reached around 80 per cent of the pre-crisis level.
→ Lufthansa improves travel experience on short and medium-haul routes.
“With rising demand for business travel and a record result of Lufthansa Cargo we have mastered another milestone on our way out of the crisis: We are back to black. We confirm our leading position among the world’s largest airline groups. Now it is a question of continuing on the path of successful change. I would like to thank our customers for their loyalty and trust, and all Lufthansa employees around the world who are contributing with passion and dedication to mastering the current challenges”, Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, says.
Positive traffic development in the third quarter
In the third quarter of 2021, capacity offered, measured in passenger-kilometers, was 50 per cent of the pre-crisis level of 2019, about twice as high as in the second quarter. Overall, the airlines of the Lufthansa Group carried 19.6 million passengers in July, August and September. This represents 46 per cent of the pre-crisis level in Q3 2019. The seat load factor was 68.8 per cent, 17.4 percentage points higher than in Q2 2021 (-17.5 percentage points compared to Q3 2019).
Third quarter revenue nearly doubled, Adjusted EBIT and Adjusted free cash flow positive
In the third quarter, Group sales nearly doubled (+96 per cent) year-on-year to 5.2 billion euros (prior year: 2.7 billion euros). Adjusted EBIT excluding restructuring costs of 255 million euros was 272 million euros in the third quarter (prior year: -1.2 billion euros). Including these restructuring expenses, Adjusted EBIT amounted to 17 million euros (prior year: -1.3 billion euros). Net income amounted to -72 million euros in the third quarter (prior year: -2.0 billion euros).
→ Lufthansa announces first route operated by Boeing 787.
Adjusted free cash flow was 13 million euros in the third quarter of 2021, despite the payment of deferred taxes at Lufthansa Technik of 443 million euros. The main reasons for the positive result were the good working capital management and the strong inflow of new bookings that continued in the third quarter.
Key figures for the first nine months
From January to September 2021, the Lufthansa Group generated revenue of around 11 billion euros (prior year: 11 billion euros). Adjusted EBIT improved to -1.6 billion euros excluding restructuring costs of 520 million euros (prior year: -4.0 billion euros). Including these restructuring costs, it amounted to -2.1 billion euros (prior year: -4.2 billion euros). Net income for the first three quarters of the year was -1.9 billion euros (prior year: -5.6 billion euros).
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Plataforma Informativa de Aviación Comercial líder en América Latina.