In This Article:
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Revenue: Exceeded EUR8 billion for the first time in Q1, with a 10% growth.
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Adjusted EBIT: Improved by EUR127 million to minus EUR722 million.
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Passenger Airlines Capacity: Increased by 5% compared to the same quarter last year.
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Load Factor: Increased, contributing to higher yields.
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Adjusted Free Cash Flow: EUR835 million, significantly above last year's level.
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Net Debt: Decreased by 8% to EUR5.3 billion.
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Net Debt-to-EBITDA Leverage: Improved to 1.7 times from 2 times at the end of 2024.
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Fuel Cost Projection for 2025: EUR7.3 billion, EUR600 million below previous guidance.
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Passenger Airlines Operating Result: Minus EUR934 million, roughly on prior year's level.
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Lufthansa Cargo Adjusted EBIT: EUR62 million, an increase of EUR84 million.
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Lufthansa Technik Revenue: EUR2 billion, a growth rate of 14%.
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Lufthansa Technik Adjusted EBIT: EUR161 million, an increase of EUR53 million.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Deutsche Lufthansa AG (DLAKF) reported record sales for Q1 2025, surpassing EUR8 billion with a 10% growth.
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Operational performance has improved significantly, with Lufthansa Airlines achieving the highest levels of regularity and punctuality in the last 10 years.
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The company has successfully increased capacity by 5% and translated this growth into higher yields and load factors.
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Lufthansa Technik and Lufthansa Cargo have shown strong performance, contributing positively to the group's revenue.
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The company has a robust hedging strategy, with 81% of fuel requirements hedged, providing financial stability against fuel price volatility.
Negative Points
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There are early signs of softness in Q3 bookings, particularly for US destinations, which could impact future revenue.
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Material costs, excluding fuel, rose by 16% year-on-year, driven by price increases from service partners.
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Personnel expenses increased by 5%, contributing to overall cost inflation.
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The company faces challenges with delayed aircraft deliveries, impacting operational efficiency.
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There is limited visibility into Q3 demand, with potential risks of a slowdown in North Atlantic bookings.
Q & A Highlights
Q: Can you explain the year-on-year profit degradation in the passenger airline business despite decent revenue trends? A: Till Streichert, CFO, explained that while there was an improvement due to the Easter effect, cost increases, particularly from system partners and suppliers, impacted the bottom line. The first quarter was on track with expectations, and the Lufthansa Airlines turnaround is expected to contribute more in the second half of the year.