Lufthansa

Tough Q1

  • Sectors : Airlines
  • Companies : Lufthansa

Ratings and price correct at time of issue.

  • Lufthansa

    Closing Price: 2208c

  • RATING 30/10/18

  • PREVIOUS RATING 27/01/17

    OUTPERFORM

DAVY VIEW

In an adhoc announcement, Lufthansa Group’s adjusted EBIT declines to -€336m in the first quarter of 2019 (a bigger loss than analyst consensus of -€186m). However, for 2019 as a whole, Lufthansa still expects to report an adjusted EBIT margin of 6.5-8.0%. (Davy: €2,739m, 7.4% margin; consensus: €2,771m, 7.4% margin). The weaker Q1 means that as capacity becomes more constrained, unit revenue will have to be positive in the coming quarters (Q2 is expected to be positive) for the mid-range of the guidance to be achieved.

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Apr 16 2019, 07:25 IST/BST

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