Lufthansa

Partly but not totally offsetting fuel

  • Sectors : Airlines & Other Transport
  • Companies : Lufthansa

Ratings and price correct at time of issue.

  • Lufthansa

    Closing Price: 2283c

  • RATING 30/10/18

  • PREVIOUS RATING 27/01/17

    OUTPERFORM

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.

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Mar 14 2019, 07:40 GMT

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