The Lufthansa Group has reported a full year 2021 net loss of €2.19 billion or (€ 2.99) per share on a year-over-year increase in revenue of 24 percent to €16.8 billion. The Group’s result reflects an operating loss cut of over two-thirds compared to 2020.
On Thursday (March 3, 2022) The Lufthansa Group reported their fourth quarter and full year financial results for the period ending December 31, 2021. The Group reported a fourth quarter net loss of €314 million or (€0.45) per share on a 125 percent increase in revenue to €5.8 billion versus Q4 2020. For the full year 2020, the company reported a net loss of €2.19 billion or (€2.99) per share on a year-over-year increase in revenue of 24 percent to €16.8 billion. Lufthansa’s FY 2021 result represents a substantial improvement over 2020, with operating losses cut by over two-thirds. Additionally, Lufthansa Cargo posted their second record result in two years with adjusted EBIT doubling to €1.5 billion.
In Thursday’s announcment, Deutsche Lufthansa AG’s CEO, Carsten Spohr, said,
“2021, was a challenging year for the Lufthansa Group and its employees. And 2022 also begins with developments that worry us as citizens of this continent. Our Airlines connect people, cultures and economies. We stand for international understanding and peace in Europe and around the world. Our thoughts are with the people of Ukraine and with our colleagues on the ground, to whom we are providing every possible support.
“The Lufthansa Group used the past financial year to further renew itself. We have decisively and consistently advanced and implemented the transformation and restructuring of the company. Today, the Lufthansa Group is more efficient and more sustainable than before the pandemic. Even in the financially most difficult two years in our history, in which painful cuts were unavoidable, we acted in a socially responsible manner and sustainably secured 105,000 jobs in the Lufthansa Group.
“We are very certain that air traffic will experience a strong upswing this year. Our strategy of expanding the private travel segment has proved successful and is paying off. People want to travel. They seek and need personal contact - especially after two years of pandemic and the associated social restrictions. pent up demand for leisure and business travel was already significantly noticeable in 2021 - and this trend is set to intensify in 2022.
“The Coronavirus crisis has taken its toll on all of us. The pandemic presented our customers, shareholders and our employees with extreme challenges. We are now leaving the crisis behind us, mentally and - in view of the strong booking figures this year - also commercially and face the next challenge strengthened.”
During 2021, 47 million passengers traveled with Lufthansa Group Airlines, a 29 percent increase compared to 2020. At December 31, 2021, the Group had available liquidity of €9.4 billion, above the company’s long-term target of €6 to 8 billion. The Group’s pension liabilities decreased year-over-year to approximately €6.7 billion from €9.9 billion in 2020, largely attributable to an increase in the interest rate used to discount pension obligations. As a result of a capital increase, the Group’s total net debt declined €900 million to €9.0 billion.
Source: Lufthansa Group