Lufthansa shares fall amid Q3 earnings miss

Lufthansa shares are lower Tuesday, after the German airline reported weaker-than-expected third-quarter earnings.

Lufthansa shares fall amid Q3 earnings miss

Lufthansa shares are lower Tuesday, after the German airline reported adjusted earnings below expectations. The flight firm also confirmed it will grow its flights schedule at a steadier pace than its competitors, weighed down by higher fuel costs and customer compensations payments.

By 1220 BST, Lufthansa shares were 7.62% lower at €17.40. The stock has been mainly lower in recent weeks trading.

Lufthansa Q3 earnings

Lufthansa said earlier Tuesday, that adjusted earnings before taxes and interest (EBIT) totalled €1.34 billion in the third quarter of 2018, down from €1.52 billion the same period a year earlier and below analysts’ forecast of around €1.41 billion.

The German airline’s net earnings, meanwhile, hit €1.065 billion, compared with €1.18 billion in Q3 2017.

It’s January-to-September performance was similar, for Lufthansa, with adjusted EBIT hitting €2.36 billion in the 2018 period, down from €2.56 billion, a year earlier. Earnings per share for Jan-Sept 2018 were €3.69 compared with €3.95 during the same period in 2017.

“We achieved an Adjusted EBIT of EUR 2.4 billion for the first three quarters of this year, the second-best nine-month result in our history,” said Lufthansa Chairman and CEO, Carsten Spohr.

“And had it not been for the losses at Eurowings, we would have posted another record earnings result. This is a clear testament to our sustainable financial strength – a strength that we have demonstrated even under challenging conditions this year,” Spohr added.

Outlook

While the customer compensation pay-outs via its budget Eurowings subsidiary have hurt Lufthansa’s performance so far in 2018, and expectations that its full year fuel bill will rise by more than $1 billion, the German airline has maintained its full year 2018 outlook.

Lufthansa continues to expect full year earnings of just below the 2017 record of €2.97 billion euros.

“We have achieved solid earnings for the first nine months of this year, and are still on course for our second-best-ever annual EBIT result,” said Lufthansa CFO, Ulrik Svensson. “So, our earnings projections for 2018 as a whole remain unchanged at slightly below previous year.”

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