Lufthansa, Germany's largest and third largest airline in the world, has announced for the first quarter of 2023 revenues of 7 billion euros, a 40% increase over the same period a year earlier. There net loss is reduced by 20% a 467 million euro, (previous year it was 584 million). L'Ebitda adjusted amounted to 272 million euros. L'Adjusted EBIT it was -273 million euros (in 2022 it was -577 million), still better than the first quarter of 2019 (pre-pandemic) at -336 million. The Adjusted EBIT margin, therefore, improves to -3,9% (-11,5% in 2022). Sui results of the Group have weighed the high costs for the increase of flight operations and the strikes affecting partner companies in Germany.
22 million passengers transported, optimism for the summer
In the first three months of the year, i passengers carried by the group companies have been 22 million. A considerable increase compared to 13 million in 2022. The capacity increased to 75% of the pre-crisis level in 2019 due to sustained high demand and was thus 30% above the previous year's level in the first quarter. They are growing again long-haul routes with a 25% increase in traffic.
Great confidence for the summer where with forecasts of revenue record and flight boom, as commented by theCEO of the Lufthansa Group, Carsten Spohr: “The Lufthansa Group is back on track. After a good first quarter in which we were able to significantly improve our results, we now expect a travel boom in the summer and a new record in our revenues from traffic for the whole year. On leisure-oriented short- and medium-haul routes, demand is already exceeding 2019 levels. The focus now is to once again offer our guests a consistent premium product experience across all group airlines . Our guests are already benefiting from many product enhancements, both on land and on board. The Lufthansa Group is well positioned for further strengthen its position in the top five groups of airlines in global competition”.
Optimism also from the CFO, Remco Steenbergen: “Consistently strong demand gives us confidence for the coming months. The season of summer travel will provide an important contribution to achieving our 2023 goals. At the same time, we will continue to invest in operational stability to provide our customers with a smooth travel experience, even if this means that we are currently operating at a much lower level of efficiency and productivity than the one initially foreseen”.
Expectations for 2023
For the full year 2023, the company expects a significant improvement in the adjusted operating result every year. The goal is a adjusted margin by at least 8% in 2024 after 4,6% in 2022. According to the CEO, all the group's brands must be profitable by the end of the current year, after having closed 2022 with a loss. More goal is to rejoin the Dax, the list of main stocks of the German Stock Exchange, from which it had exited following the pandemic ending up in the MDax. “The capital markets are again very confident in the crane, our symbol. And the prospects for a return to the Dax are good,” Spohr explained.
Lufthansa and Ita Airways: negotiations continue
With the publication of quarterly data, Lufthansa did not provide updates on negotiations with the Ministry of Economy and Finance for its entry into Italy Airways. The intention of the group as previously leaked, remains to acquire a minority stake between 20 and 40% for 250-300 million through a capital increase. "THE our talks with the Italian government for the participation and acquisition of Ita Airways I'm on the right track. With this initiative, we want to strengthen our presence in Europe and add another very interesting domestic market to our group” explained CEO Spohr in a letter to shareholders ahead of theannual meeting of Lufthansa, scheduled for 9st May where he will present the dossier on entry into ITA. On this operation Spohr wished reassure members explaining that "Ita should not be confused with Alitalia. Demand is high, both among business travelers and those for personal reasons to and from Italy. The country is already our largest foreign market after the United States. Ita's entry into the agglomeration of European carriers has good chance of success".
Lufthansa submitted an offer on January 18 last “in the form of a letter of intent, to the Italian Ministry of Economy and Finance for the acquisition of a stake in the national airline Ita Airways. The letter of intent was signed on January 27”.
After the assembly, therefore, the situation of the negotiation will really be understood. The 12st May in case of no agreement the extension ends of the exclusive negotiation between the two parties.
