Lufthansa Reports Q3 Net Profit Drop

Lufthansa Group reported a 17 percent drop in third quarter net profit to EUR€1.18 billion (USD$1.4 billion), despite an 11 percent jump in revenue.

Adjusted pre-tax earnings (EBIT) of €1.52 billion, however, was a 32.2 percent increase on the previous year quarter, on total revenue of €9.81 billion.

Lufthansa carried 38.4 million passengers in the quarter, a 17.7 percent lift as Brussels Airlines figures were consolidated into the results. Passenger traffic in RPK terms rose 13.2 percent on an ASK capacity increase of 11.8 percent. The resulting load factor of 85.4 percent was up just over 1 percentage point.

For the nine months to the end of September, Lufthansa made a net profit of €1.85 billion, virtually flat from the same period last year. Revenue was up 12.1 percent to €26.76 billion, but operating expenses came in 12.7 percent higher at €26.21 billion as staff costs rose 23.7 percent to €6.46 billion with the inclusion of Brussels Airlines in the accounts.

“We achieved another record earnings result in the first nine months of this year,” Lufthansa chairman Carsten Spohr said. “A result that gives us the investment and growth capabilities we need to play an active part in the consolidation of the European airline market, and to continue to invest in the future of our company.”

Looking forward, Lufthansa said it will add 5.5 percent more ASK capacity during the fourth quarter compared with 4Q16, but with the addition of Brussels Airlines and the recent wet lease agreement with Air Berlin included, the increase will be 14.4 percent.

Adjusted EBIT forecast for the year was maintained at above 2016's total of €1.75 billion.