Lufthansa Group Reports First Quarter Net Loss of €584 Million or €0.49 per Share
The Lufthansa Group has reported a first quarter 2022 net loss of €584 million or (€0.49) per share on a year-over-year increase in revenue of 109 percent to €5.4 billion. At March 31, 2022, the Group had total available liquidity of €9.9 billion.
On Thursday (May 5, 2022), The Lufthansa Group reported their first quarter financial results for the period ending March 31, 2022. The Group reported a first quarter net loss of €584 million or (€0.49) per share on a year-over-year increase in revenue of 109 percent to €5.4 billion. Lufthansa Cargo achieved a record result with a first quarter increase in Adjusted EBIT of 57 percent to €495 million compared to Q1 2021, while Lufthansa Technik’s Adjusted EBIT increased year-over-year by 167 percent to €120 million. LSG Group’s result was down year-over-year to -€14 million, compared to -€8 million in the same period last year, primarily attributable to the end of the U.S. Government support measures. At March 31, 2022, the Group had total liquidity of €9.9 billion.
In Thursday’s announcment, Deutsche Lufthansa AG’s CEO, Carsten Spohr, said,
“The world is currently witnessing the importance of understanding and collaboration among people. Aviation makes an important contribution to this - it strengthens the exchange between people. We continue on our mission to connect people, cultures and economies in a sustainable way. The restrictions on air traffic have largely been overcome. We are now mentally ticking off the crisis and once again leading the way - more focused, more efficient and more sustainable than before the pandemic. The past few weeks in particular have clearly shown how great people's desire to travel is. New bookings are increasing from week to week - among business travelers, but especially for vacation and leisure travel. Supply chains around the world are still disrupted while demand for freight capacity remains high. This makes our strategic decision to further strengthen Lufthansa Cargo even more valuable.”
Also commenting on the group’s first quarter results, Deutsche Lufthansa AG’s Chief Financial Officer, Remco Steenbergen, added,
“Demand has recovered faster and stronger than expected in recent weeks. The current level of bookings gives us confidence that our financial results will further improve in the coming quarters. We must pass through rising costs to customers. In addition, the implementation of the remaining cost reduction measures amounting to a good half billion euros will contribute to making our company as resilient as possible in the current uncertain environment.”
During the first quarter, the Lufthansa Group more than quadrupled the number of passengers carried compared to the same period last year, with Group airlines welcoming 13 million passengers, compared to 3.0 million in Q1 2021. Between January and March, the Group’s capacity averaged 57 percent compared to Q1 2019, but was up 171 percent compared to the first quarter of 2021.
Group’s reported €9.9 billion in total liquidity at the end of the first quarter does not include the signing of a new revolving credit facility at the beginning of April, which increases available credit lines to €1.3 billion. Additionally, due to the positive liquidity development, Lufthansa Group intends to terminate stabilization measures in Switzerland ahead of schedule during the second quarter. At March 31, 2022, SWISS had drawn down 210 million Swiss francs from the 1.5 billion Swiss franc state-backed loan facility. After repayment, the entire credit line will be terminated in full.
Source: Lufthansa Group