- Lufthansa reported a first-quarter adjusted EBIT loss of €722 million, which is better than the estimated loss of €747.2 million. This represents a 15% year-over-year improvement.
- Passenger airlines segment encountered an adjusted EBIT loss of €934 million, a slight 1.7% increase from the previous year, and worse than the estimated loss of €828.5 million.
- The adjusted EBIT margin improved to -8.9% compared to -11.5% from the previous year, and was better than the anticipated -9.41%.
- Overall revenue rose by 9.9% year-over-year to €8.13 billion, surpassing the estimate of €7.95 billion.
- Passenger airlines revenue was reported at €5.90 billion, a 5.4% rise from the previous year, but slightly below the expected €5.92 billion.
- The company faced a net loss of €885 million, which is a 21% increase year-over-year and greater than the expected loss of €633.5 million.
- Loss per share was €0.74, up from a loss of €0.61 per share year-over-year, and more than the estimated loss of €0.51 per share.
- Adjusted free cash flow significantly increased to €835 million from €305 million in the prior year.
- Available Seat Kilometers (ASK) rose by 4.6% to 69.92 billion, exceeding estimates of 69.58 billion.
- Seat load factor was slightly down to 78.7% compared to 79.7% a year before, and lower than the estimate of 80.3%.
- The number of passengers decreased slightly by 0.3% to 24.29 million, missing the estimate of 26.37 million.
- Revenue seat-kilometers increased 3.3% year-over-year to 55.02 billion, falling short of the estimated 60.87 billion.
- The Lufthansa Group expects strong summer travel demand and notes a steady demand for long-haul travel, including increased ticket sales for flights involving North America.
- Economic uncertainties, including trade tensions between the US, EU, and other regions, challenge accurate forecasting for upcoming quarters.
- The Lufthansa Group has established a task force to monitor developments closely and adjust capacity if there is a weakening in demand.
- Demand in the US sales region continues to grow, with a 25% increase in passengers flying from the US to Europe in March compared to the previous year.
A look at Deutsche Lufthansa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Deutsche Lufthansa Aktiengesellschaft, a company providing global passenger and cargo air transportation services, has received high scores across key factors. With top ratings in Value, Dividend, and Growth, the company is positioned well for long-term success. A perfect score in Value indicates that the company’s stock is considered undervalued according to Smartkarma’s analysis. This, coupled with a strong Dividend score, suggests that Deutsche Lufthansa offers attractive returns to investors. The Growth score of 5 further reinforces the company’s potential for expansion and profitability in the future.
While Deutsche Lufthansa shows strength in Value, Dividend, and Growth, its Resilience and Momentum scores are slightly lower. A score of 3 in Resilience indicates that the company may face some challenges in managing risks and market uncertainties. However, a Momentum score of 4 suggests that there is still positive market sentiment and upward trend potential for Deutsche Lufthansa. In conclusion, despite some resilience concerns, the overall outlook for Deutsche Lufthansa appears positive, supported by its robust performance in key areas.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
