Strengthening the balance sheet remains in focus
The Lufthansa Group is committed to strengthening its balance sheet and achieving an investment grade rating in the medium term. “Financial stability has always been an important pillar of the Lufthansa Group and the prerequisite for long-term success,” says Remco Steenbergen, CFO of Deutsche Lufthansa AG. “In order to compensate for the effects of the corona crisis, the consistent and successful implementation of strict cost-cutting measures in all Group companies remains our highest priority. Furthermore our financing measures create the conditions to position the company for the future and to maintain and strengthen its competitive position,” says Steenbergen.
Regarding future corporate financing, the company will propose the Annual General Meeting on 4 May 2021 the creation of a new Authorized Capital C in accordance with §7b WStBG (Economic Stabilization Acceleration Act) with a nominal value of up to EUR 5.5 billion. The aim is for the company to raise capital flexibly in the capital market.
Capacity development and outlook
The evolution of the pandemic is causing continued travel restrictions in almost all parts of the world. Therefore, demand is expected to only recover gradually in the second quarter. However, as a result of the progress of vaccinations and the further availability and growing acceptance of testing possibilities, the company expects a significant market recovery in the second half of the year. For the full year, the company expects a capacity of approximately 40 percent of the pre-crisis level (so far: 40 to 50 percent).
The desire for travel is unbroken among people worldwide. Where restrictions are relaxed or eliminated, bookings rapidly increase. Especially for leisure destinations, demand is expected to increase significantly. The Lufthansa Group Airlines will be able to offer capacity up to 70 percent of pre-crisis levels in the short term in order to react flexibly to market changes. Furthermore, our airlines have added a large number of flights to leisure destinations in their flight plans.
For the second quarter the company expects a lower operating cash drain compared to the first quarter. Supported by further structural cost reductions and the successive expansion of flight schedules, an operating cash drain of around EUR 200 million per month on average is expected. For the full year, the guidance for a lower operating loss compared to the prior year, as measured by Adjusted EBIT, remains unchanged.
| Grupo Lufthansa | Janeiro Março | |||
| 2021 | 2020 | Δ | ||
| Receita das vendas | Milhões de euros | 2,560 | 6,441 | -60% |
| Of which traffic revenue | Milhões de euros | 1,542 | 4,539 | -66% |
| EBIT | Milhões de euros | -1,135 | -1,622 | 30% |
| EBIT ajustado1 | Milhões de euros | -1,143 | -1,220 | 6% |
| Lucro líquido | Milhões de euros | -1,049 | -2,124 | 51% |
| Lucro por ação | EUR | -1.75 | -4.44 | 61% |
| Ativo total | Milhões de euros | 38,453 | 43,352 | -11% |
| Fluxo de caixa operacional | Milhões de euros | -766 | 1,367 | |
| Gross investments | Milhões de euros | 153 | 770 | -80% |
| Fluxo de caixa livre ajustado | Milhões de euros | -947 | 620 | |
| Margem EBIT ajustada | no % | -44.6 | -18.9 | -25.7 pontos |
| Employees as of 31 March | 111,262 | 136,966 | -19% |
