DAVY VIEW

Lufthansa reported robust FY 2018 numbers with adjusted EBIT of €2836m (consensus: €2779m, Davy: €2744m) and an adjusted EBIT margin of 7.9% (down 0.4 points) despite a number of headwinds. The dividend has been maintained at 80c. FY 2019 guidance of mid-single-digit revenue growth is contributing to offsetting the €650m fuel increase, with an adjusted EBIT margin of 6.5-8% — implying adjusted EBIT of c.€2.4-3bn (consensus: €2786m, Davy: €2977m). The fuel headwind will likely imply a modest pullback in our numbers, noting a unit revenue guidance of “stable to down low-single-digit” in the Network Airlines and “stable to up low-single-digit” in Eurowings. There is a conference call at 13:00 CET: Germany +49 69 566 037 000; UK +44 203 059 5869; USA +1 760 294 1674.