The world is currently experiencing how important exchange between countries and continents is. Our mission to connect people, cultures and economies in a sustainable way is more relevant than ever. Every day we realize how much people have missed personal contact, discovery, and travel.
The corona virus pandemic took a lot out of Lufthansa Group. We had to deal with the worst financial crisis in our history. But now we are putting the crisis behind us and looking ahead. We are in a new normal, focusing on our strength.
The decisive factor why we can leave the corona virus behind is our customers' desire to travel. After two long years of travel restrictions, the need to catch up is great. This applies to business customers, but especially to leisure travelers. We expect strong growth for our airlines in the upcoming summer months, probably having more tourists and vacationers onboard our flights than ever before. Structurally, we are well positioned to meet the growing demand in the private travel sector. We have consistently expanded our offering in this sector and are now benefiting from this strategic decision.
And to further improve the travel experience of our guests on board, we are investing in new onboard cabin products. Over the next 18 months, we will be introducing new seats in all travel classes: First Class, Business Class, Premium Economy and Economy Class. Just recently, the first Airbus A350 with an improved Business Class began scheduled service.
Our network is almost fully restored. We fly to over 300 cities worldwide via our hubs this summer - the same number as in 2019. In the U.S., there are even more destinations than before the pandemic. For leisure travelers, we offer more choices in the tourist sector than ever before, with more than 120 vacation destinations.
Lufthansa Cargo is and remains a success story. Worldwide supply chains have still not been restored and sea freight is still overloaded. As a result, demand for airfreight capacities remains very high. Lufthansa Cargo achieved another record result in the first quarter. Lufthansa Technik also achieved a positive result due to increased demand for maintenance services. Overall, the Lufthansa Group was able to significantly reduce its operating loss in the first quarter of 2022 compared with the previous year. Progress in implementing the restructuring programs also contributed to this. For the full year 2022, we expect a further year-on-year improvement in earnings, despite existing uncertainties, particularly with regard to the development of fuel costs.
Sustainability is not just a trend, but the future of us all. This is why we are closely integrating sustainability considerations into our business activities. This applies to the design of what we offer our customers, the procurement of new, more fuel-efficient aircraft, and for our commitment to the research and development of synthetic fuel, which we conduct ourselves or with partner networks - to highlight just three examples. Just a few days ago, Lufthansa German Airlines integrated new options for offsetting CO2 emissions directly into the digital booking process. As a result, after just a few days, the booking share of CO2-neutral flights via lufthansa.com has significantly increased. We are also continuing to expand our sustainability reporting, for example with the expanded factsheet "Sustainability in 2021", which we recently published.
We are pleased that you are accompanying us on our journey to a new normal and to new strength. See you soon on board our aircraft!
Head of Investor Relations
Deutsche Lufthansa AG
Revenue €m
Adjusted EBIT €m
The performance of the Lufthansa Group improved significantly over the first quarter of 2022. However, in view of the deterioration in the pandemic situation towards the end of 2021 and the seasonality of the airline business, which causes flight traffic to be significantly lower in the first three months than in the rest of the year, the Lufthansa Group nonetheless posted an operating loss.
At the beginning of the year, demand for air travel was significantly impacted by the spread of the Omicron variant. However, towards the middle of the first quarter, the development of demand decoupled from the development of infection figures. Accordingly, capacity was also significantly expanded at the end of the quarter.
Though the war in Ukraine only led to a temporary downturn in bookings, it had an adverse impact on the course of business of the Lufthansa Group. This was due in particular to the substantial increase in kerosene prices and, to a lesser extent, to the loss of markets in Ukraine and Russia and the necessary adjustments of flight routes to Asia.
Available capacity at the Passenger Airlines was 171% up on the previous year’s level in the first quarter of 2022, corresponding to 57% of its pre-crisis level in 2019. Traffic revenue for the Lufthansa Group rose year-on-year by EUR 2,291m or 149% to EUR 3,833m (previous year: EUR 1,542m). Revenue of EUR 5,363m was EUR 2,803m or 109% higher than a year ago (previous year: EUR 2,560m).
The Lufthansa Group’s cargo business profited from continuing strong demand for cargo capacities and high yields. Adjusted EBIT of EUR 495m (previous year: EUR 315m) was the highest ever in a first quarter. The MRO business segment profited from increasing demand for maintenance services and also reported positive Adjusted EBIT of EUR 120m (previous year: EUR 45m).
The Lufthansa Group made further progress with the implementation of its restructuring programme in the first quarter of 2022. The measures implemented to date will account for approximately 80% of the annual savings totalling EUR 3.5bn that are to be achieved from 2024 onwards.
The positive performance by the Logistics and MRO segments, along with progress in the restructuring programme, partially made up for the losses in Passenger Airlines. The operating loss in the first quarter of 2022 was reduced significantly year-on-year as a result. Adjusted EBIT came to EUR -591m (previous year: EUR -1,048m). The Adjusted EBIT margin was -11.0% (previous year: -40.9%). EBIT amounted to EUR -640m (previous year: EUR -1,135m). The net loss came to EUR -584m in the first quarter of 2022 (previous year: EUR -1,049m).
Adjusted free cash flow came to EUR 780m (previous year: EUR -953m), mainly thanks to a high level of incoming bookings and the resulting advance payments, particularly for flights in spring and summer 2022.
The equity ratio rose by 1.6 percentage points to 12.2% (31 December 2021: 10.6%), largely due to a decline in pension provisions compared with year-end 2021. Positive Adjusted free cash flow brought net indebtedness down to EUR 8,283m, a reduction of EUR 740m or 8% on year-end 2021 (31 December 2021: EUR 9,023m).
At the end of March 2022, the Group had available liquidity of EUR 9.9bn in total. This does not yet include a revolving credit facility that was signed in early April.
Development Revenue, Adjusted EBIT €m (Jan – Mar)
Adjusted EBIT margin in % (Jan – Mar)
| Jan – Mar 2022 | Jan – Mar 2021 | Change in % | ||
|---|---|---|---|---|
| Total revenue | €m | 5,363 | 2,560 | 109 |
| of whichtraffic revenue | €m | 3,833 | 1,542 | 149 |
| Operating expenses1) | €m | 6,361 | 3,885 | 64 |
| Adjusted EBITDA1) | €m | -28 | -482 | 94 |
| Adjusted EBIT1) | €m | -591 | -1,048 | 44 |
| EBIT | €m | -640 | -1,135 | 44 |
| Net profit/loss | €m | -584 | -1,049 | 44 |
| Jan – Mar 2022 | Jan – Mar 2021 | Change in % | ||
|---|---|---|---|---|
| Total assets | €m | 44,386 | 38,453 | 15 |
| Equity | €m | 5,426 | 2,052 | 164 |
| Equity ratio | % | 12.2 | 5.3 | 6.9 pts |
| Net indebtedness | €m | 8,283 | 10,924 | -24 |
| Pension provisions | €m | 5,711 | 7,821 | -27 |
| Cash flow from operating activities1) | €m | 1,496 | -775 | |
| Gross capital expenditure | €m | 640 | 153 | 318 |
| Net capital expenditure | €m | 637 | 87 | 632 |
| Adjusted free cash flow1) | €m | 780 | -953 |
| Jan – Mar 2022 | Jan – Mar 2021 | Change in % | ||
|---|---|---|---|---|
| Adjusted EBITDA-margin1) | % | -0.5 | -18.8 | 18.3 pts |
| Adjusted EBIT-margin1) | % | -11.0 | -40.9 | 29.9 pts |
| EBIT-margin | % | -11.9 | -44.3 | 32.4 pts |
| Jan – Mar 2022 | Jan – Mar 2021 | Change in % | ||
|---|---|---|---|---|
| Share price as of 31 Mar 2) | € | 7.36 | 8.07 | -9 |
| Earnings per share | € | -0.49 | -1.75 | 72 |
| Jan – Mar 2022 | Jan – Mar 2021 | Change in % | ||
|---|---|---|---|---|
| Employees as of 31 Mar | number | 104,034 | 111,262 | -6 |
| Jan – Mar 2022 | Jan – Mar 2021 | Change in % | ||
|---|---|---|---|---|
| Flights | number | 135,539 | 41,013 | 230 |
| Passengers | thousands | 13,173 | 3,046 | 332 |
| Available seat-kilometres | millions | 45,656 | 16,855 | 171 |
| Revenue seat-kilometres | millions | 29,862 | 7,582 | 294 |
| Passenger load factor | % | 65.4 | 45.0 | 20.4 pts |
| Available cargo tonne-kilometres | millions | 3,142 | 2,527 | 24 |
| Revenue cargo tonne-kilometres | millions | 2,138 | 1,947 | 10 |
| Cargo load factor | % | 68.0 | 77.0 | -9.0 pts |
1) Previous year's figures have been adjusted due to amendments in the definition of the figures.
2) Share price development adjusted for the effects of the issue of new shares in connection with the capital increase in September 2021.
Date of publication: 5 May 2022.
Starting from a year-end price of EUR 6.18 in 2021, the Lufthansa share price developed much more positively than the market as a whole in the first quarter of 2022. Driven by an emerging market recovery over Easter and in the summer, the share price rose to EUR 7.81 by mid-February. Subsequently, however, the share price fell, particularly due to the outbreak of the war in Ukraine and the associated rise in the oil price, but recovered due to the ongoing market recovery and was quoted at EUR 7.36 as of 31 March 2022. The share price thus recorded an increase of 19% in the first quarter of 2022.
The Lufthansa share thus performed better than the shares of its relevant competitors Air France-KLM, whose share price rose by 6%, and IAG, whose share price remained at the same level as at the beginning of the year. The share prices of the European low-cost carriers also underperformed the Lufthansa share. The share of WIZZair in particular suffered heavily from the effects of the Ukraine war due to the airline's regional focus on Eastern Europe and its decision not to hedge fuel expenses, falling by 31% in the first quarter of 2022. The benchmark index MDAX fell by 12% in the same period.
The impact of the Ukraine war on the global economy – especially on consumer confidence and energy prices – is expected to have a strong influence on the Group’s economic recovery. However, a more precise estimate of its effects was not possible at the time this report was prepared.
The further course of the pandemic and the resulting changes in travel restrictions are also subject to considerable uncertainty. The Group’s entire financial outlook therefore remains subject to a high degree of forecast uncertainty.
Based on current booking patterns, the Lufthansa Group assumes it will be able to expand flight capacity significantly over the course of the year. The expectation is that capacity expansion will be driven largely by short-haul tourist routes in Europe. The Lufthansa Group also expects further recovery on long-haul routes and in the business travel segment, although at a lower level. Overall, the Lufthansa Group anticipates that available capacity for the passenger airlines in 2022 will be above 70% of its pre-crisis level, subject to the development of the Ukraine war.
Due to the further recovery of the Passenger Airlines, continued strong demand in the Logistics segment and an ongoing upturn in the MRO segment, the Lufthansa Group expects revenue to increase in 2022, though it is not expected to attain its pre-crisis level this year.
The Lufthansa Group expects Adjusted EBIT to improve year-on-year in 2022. The extent of the improvement is expected to depend largely on the extent to which the Group can pass on rising costs, especially for fuel, to its customers. Continued progress with the implementation of the cost-cutting programme will support the earnings performance.
Deutsche Lufthansa AG invited its shareholders to the 69th Annual General Meeting on 10 May 2022 at 10:00 hrs. The meeting will once again be held virtually.
The Annual General Meeting will be broadcast live on the webpage of Lufthansa Group. Shareholders can participate in the voting via the online services. The closing date for registration was 3 May 2022, 24:00 hrs.
The speech by Carsten Spohr, Chief Executive Officer of Deutsche Lufthansa AG, was already published on the website in advance of the meeting. This gives shareholders the opportunity to refer to it when asking questions. Questions on the agenda can still be submitted to the Executive Board via the online services until midnight on 8 May if the shareholder has already registered for the Annual General Meeting. For the first time, answers to questions submitted in time will be published in the online service and such questions will not be answered again during the virtual Annual General Meeting. If shareholders still have further questions, they can also be submitted on the day of the Annual General Meeting via the online services. In addition, comments can also be submitted as a video or audio message and, for the first time, live speeches can be held after prior registration.
Among the items on the agenda of the Annual General Meeting are the cancellation and creation of Authorised and Conditional Capitals in order to adjust them to the higher share capital due to the capital increase last year. In addition, the Executive Board and the Supervisory Board propose to completely cancel the authorisations for capital measures that were related to the stabilisation measures in Germany, which have been fully repaid in the meantime.
The Lufthansa Group signed its first revolving credit facility with a broad syndicate of international relationship banks on 8 April 2022.
The total facility amount is EUR 2.0bn and will be available for a period of three years plus two one-year extension options. Other than customary group guarantees, the facility is unsecured, has no financial covenants and serves as undrawn back-up liquidity. It replaces existing undrawn bilateral credit lines of approx. EUR 0.7bn. The facility therefore further increases available liquidity of Lufthansa Group by approx. EUR 1.3bn.
Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG, says: “The signing of our first syndicated revolving credit facility further strengthens our liquidity reserve, increases the efficiency of our balance sheet in securing our liquidity target of EUR 6-8bn and demonstrates our strong long-standing relationships with our core banking group.”
Munich has a new flying ambassador. On 29 April 2022, the Airbus A350-900 from Lufthansa German Airlines with the registration D-AIVC was christened at Munich Airport by the Bavarian Minister President Dr. Markus Söder in the name of the city of Munich.
In his address, Carsten Spohr, Chief Executive Officer of Deutsche Lufthansa AG said: "The A350 is the quietest and most fuel-efficient long-haul aircraft in our fleet. With a significantly improved Business Class on board, this aircraft also represents the beginning of one of the largest product modernizations in Lufthansa's history. This aircraft is sustainable and offers customers a premium flight experience. The "Munich" is a worthy ambassador of the Bavarian capital to the world."
The “Munich” now departs from the Bavarian hub for Montreal, Toronto and Vancouver in Canada. It is the first aircraft in the fleet of Lufthansa German Airlines to offer its guests an improved Business Class. All seats have direct access to the aisle, can be easily and quickly converted into a two-meter-long bed and offer more storage space. In addition, travelers have significantly more space in the shoulder area.
The introduction of the improved Business Class marks the beginning of an extensive renewal of Lufthansa German Airlines' cabins. Next year, the airline will introduce a new top product in all travel classes, Economy, Premium Economy, Business and First Class, that is unparalleled in the market.
On 29 April 2022, Lufthansa Group published its annual factsheet “Sustainability in 2021” together with the TCFD and SASB reports on its website.
The factsheet supplements the non-financial declaration in the Annual Report. It provides in-depth insights in an informative manner into the most important sustainability topics and activities of the Lufthansa Group, for example the key levers for reducing the CO2 footprint. Various deep dives make these tangible for the reader and provide additional context. Besides the factsheet, the annual TCFD and SASB reports are disclosed and accordingly inform about the Group's sustainability efforts. With these reports, Lufthansa Group achieves progress in disclosing clear, consistent and reliable information on various ESG aspects, including also an extended scenario analysis in the TCFD report.
With a single click, customers of Lufthansa German Airlines can now easily minimize carbon emissions of their flights. After flight selection, they can further choose one of three options to fly CO2-neutral.
The first option is to use sustainable aviation fuel (SAF) that is currently produced from residual biogenic materials and directly reduces CO2 emissions. A second option is to using high quality carbon offset projects run by the non-profit organization myclimate in Germany and other countries worldwide. These promote measurable climate protection by not only reducing CO2 but also locally improving the quality of life and biodiversity. The third option is a combination of the first two options.
During the second quarter of 2022, the same service will also be available for other Lufthansa Group airlines: Austrian Airlines, Brussels Airlines and SWISS. These options will become even more attractive by awarding additional status and award miles.
"We continue to invest more than ever in the quality and sustainability of our flights. We already are the largest buyer of SAF in Europe and offer the most comprehensive range of ways to fly CO2-neutral. And we have now integrated this into the booking process. We want to make it as easy as possible for our customers to save CO2. People not only want to fly and discover more of the world – they also want to protect it. We believe in this way an important contribution to do this can be made. I am convinced this will inspire more and more passengers to travel sustainably," says Christina Foerster, Member of the Lufthansa Group's Executive Board, responsible for Customer, IT & Corporate Responsibility.
To date, less than one percent of passengers have taken advantage of Lufthansa German Airlines' long standing option to fly carbon neutral. This new offer, which will also be available for mobile devices when booking flights, is part of Lufthansa Group’s product campaign for sustainable flying. In the coming years, the Group plans to offer customers significantly more sustainable travel options. The basis for this new service is the digital solution "Compensaid," developed in 2019 by Lufthansa Innovation Hub.
Despite the still noticeable effects of the Corona pandemic on project work, help alliance is increasing its commitment in Germany and worldwide. The Lufthansa Group's aid organization is now supporting 17 new projects focusing on education, work and income, including for the first time in Argentina, Italy, Iraq, Cameroon, Colombia and the Philippines. As in the past, the projects were selected from suggestions by employees and are supervised and managed by them on a voluntary basis. In total, help alliance is now involved in 51 aid projects in 24 countries for disadvantaged young people.
"The Corona pandemic has further exacerbated the global education crisis. That's why there is so much for us to do as an aid organization right now. The new help alliance projects are designed to help provide equal opportunities for children and young people after this difficult time. Education is the key to a successful future," says Andrea Pernkopf, Managing Director of help alliance.
In the global south, school closures have had a particularly negative impact on the educational opportunities of children and young people. According to the United Nations Children's Fund (UNICEF), insufficient digitization and a lack of equipment prevented at least one-third of students worldwide from learning from home during the pandemic.
Through its work, help alliance is making an important contribution to the United Nations Sustainable Development Goals (SDGs) of "Quality Education" (SDG 4) and "Decent Work and Economic Growth" (SDG 8).
At its meeting on 2 March 2022, the Supervisory Board of Deutsche Lufthansa AG decided to extend the contracts of Christina Foerster and Michael Niggemann ahead of schedule for five more years until 31 December 2027.
The Chairman of the Supervisory Board of Deutsche Lufthansa AG, Karl-Ludwig Kley, says: "I am delighted that Christina Foerster and Michael Niggemann will continue their successful work on the Executive Board. With their great competence and proven skills, they will make an important contribution to the successful transformation of the Lufthansa Group. The contract extensions are also an important sign of continuity in these challenging times.”
Christina Foerster (50) and Michael Niggemann (47) have been members of the Executive Board of Deutsche Lufthansa AG since 1 January 2020.
The Supervisory Board has also decided on changes in the allocation of Executive Board responsibilities with effect from 1 July 2022: Michael Niggemann will also assume responsibility for Infrastructure & System Partners from the summer. Detlef Kayser will in future also be responsible for IT & Cyber Security and Procurement, and Christina Foerster will now lead Employer Branding & Talent Management. The management of the worldwide stations of Lufthansa Group Airlines will in future be assigned to the area of responsibility of Harry Hohmeister.
We are at your disposal to answer your questions.
Analyst and Investor Communication
Information published in this Shareholder Information with regard to the future development of the Lufthansa Group and its subsidiaries consists purely of forecasts and assessments and not of definitive historical facts. Its purpose is exclusively informational and is identified by the use of such terms as ‘believe’, ‘expect’, ‘forecast’, ‘intend’, ‘project’, ‘plan’, ‘estimate’, ‘assume’ and ‘endeavour’. These forward-looking statements are based on all discernible information, facts and expectations available at the time. They can, therefore, only claim validity up to the date of their publication.
Since forward-looking statements are by their nature subject to uncertainties and imponderable risk factors – such as changes in underlying economic conditions – and rest on assumptions that may not, or divergently occur, it is possible that the Group’s actual results and development may differ materially from those implied by the forecasts. The Lufthansa Group makes a point of checking and updating the information it publishes. It cannot, however, assume any obligation to adapt forward-looking statements to accommodate events or developments that may occur at some later date. Accordingly, it neither expressly nor conclusively accepts liability, nor gives any guarantee for the actuality, accuracy or completeness of this data and information.
The Lufthansa Group is a global aviation group with a total of more than 580 subsidiaries and equity investments.
Corporate responsibility, that is to say sustainable and responsible entrepreneurial practice, is an integral part of our corporate strategy. It means that we are committed to creating added value for our customers, employees and investors and to meeting our responsibilities toward the environment and society.
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