The Group increased its total revenues by 12.7% to €17bn in the first six months of 2017, compared to 15bn over the same period of the previous year. Traffic revenues were also up by 14.2% to €13.3bn (€11.6bn the year prior) and adjusted EBIT was roughly doubled to over €1bn (€529m the year prior), giving the Lufthansa Group its best ever first half year earnings.
The company attributes the improved earnings performance primarily to strong demand and lower unit costs at the Group’s passenger airlines. Unit costs, excluding fuel and currency, declined by 1.2% in the first half of the year, and by 3.4% in the second quarter alone
The good news continues. Despite increased capacity, load factors were up on their prior-year levels in all traffic regions and the Adjusted EBIT margin of 6.1% was a 2.6-percentage-point improvement on the prior-year period – in spite of 9.5% higher fuel costs than the previous year.
All the Group’s first-half performance figures and fuel costs take into consideration the impact of the consolidation of Brussels Airlines and of the aircraft wet-leased from Air Berlin.
“We have achieved the best first half-year result in our company’s history,” commented Ulrik Svensson, Chief Financial Officer of Deutsche Lufthansa AG. “In addition to strong demand and a robust pricing environment, this is attributable to the fact that we achieved a further structural reduction in costs. Our hard work in cutting our costs is reaping its rewards. But we must continue these endeavours: this is the most important way that our margins can be improved sustainably.”
