Based on preliminary figures, Deutsche Lufthansa AG generated revenues of EUR 23.9bn in the first nine months of 2016 (prior-year period: EUR 24.3bn). The Adjusted EBIT came to EUR 1,677m (prior-year period: EUR 1,693m). The Passenger Airline Group business segment achieved an Adjusted EBIT of EUR 1,406m (prior-year period: EUR 1,350m). Unit revenues at constant currency decreased by 5.8 per cent on the same period of the previous year (6.7 per cent in the third quarter). Unit costs excluding fuel and currency effects were down by 2.1 per cent (2.1 per cent in the third quarter) after eliminating the positive effect from the tariff agreement with the flight attendants’ union UFO and other non-recurring effects in the transition of EBIT to Adjusted EBIT. Cumulative Adjusted EBIT for the remaining business segments (including consolidation and reconciliation) came to EUR 271m (prior-year period: EUR 343m). Fuel costs decreased by EUR 798m on the same period of the previous year.

At the end of the first nine months, net debt decreased to EUR 2.2bn (year-end 2015: EUR 3.3bn). The Lufthansa Group’s IFRS equity ratio decreased to 14.1 per cent (year-end 2015: 18.0 per cent) due to the lower discount rate for pension obligations, which decreased to 1.5 per cent (year-end 2015: 2.8 per cent). At the end of the first half-year the equity ratio stood at 10.8 per cent.

Compared to the previous guidance, especially the difficult-to-forecast short-term bookings of business travelers in September have developed better than expected. The capacity and steering measures initiated after the decline in long-term bookings were successful. However, political and economic uncertainties continue to significantly burden long-term bookings, especially on long-haul routes to Europe. Forecasting short-term bookings therefore remains challenging and may lead to significant volatility in earnings going forward.

On the basis of experience gathered in this environment so far, the Lufthansa Group’s Executive Board increases its full year forecast for Adjusted EBIT from 'below previous year’ to ‘approximately on previous year’s level’. It is expected that revenues at constant currency will fall by 7 to 8 per cent in the fourth quarter, which is a one percentage point lower decrease compared to what was expected in July. Unchanged, unit costs excluding fuel and currency effects are expected to decrease by 2 to 3 per cent in the fourth quarter. On current projections, fuel costs will decrease by about EUR 140m in the fourth quarter on the same period of the previous year. The other business segments are expecting cumulative earnings slightly below the same period last year in the fourth quarter.

Deutsche Lufthansa AG will publish its detailed results for the first nine months of 2016 on 2 November 2016 at 7.30 a.m. CET, on <link _top internal link in current>

Person making the notification: Andreas Hagenbring, Head of Investor Relations Lufthansa Group.

Note: ‘Adjusted EBIT’ is not a financial term according to IFRS. Information regarding the calculation of the Adjusted EBIT can be found in the Annual Report 2015 of Deutsche Lufthansa AG from p. 13.