DGAP-Adhoc: Deutsche Lufthansa AG: Lufthansa reports Adj. EBIT of EUR 529m in the first half of 2016 (previous year: EUR 468m). Due to increasing political and economic uncertainties the Executive Board reduces forecast for the Adj. EBIT 2016 to 'below previous year'

Deutsche Lufthansa AG  / Key word(s): Change in Forecast

20.07.2016 20:20

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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8.20pm

Based on preliminary figures, Deutsche Lufthansa AG generated revenues of
EUR 15.0bn in the first half of 2016 (prior-year period: EUR 15.4bn). The
Adjusted EBIT came to EUR 529m (prior-year period: EUR 468m). The Passenger
Airline Group business segment achieved an Adjusted EBIT of EUR 441m
(prior-year period: EUR 249m). Unit revenues at constant currency decreased
by 5.2 per cent on the same period of the previous year. Unit costs
excluding fuel and currency effects were down year-on-year by 1.3 per cent.
Not included in the half-year figures are the effects on the balance sheet
and the income statement of the tariff settlement with the UFO flight
attendants' union, which is still subject to approval. Cumulative Adjusted
EBIT for the other business segments (including consolidation and
reconciliation) came to EUR 88m (prior-year period: EUR 219m).

At the end of the first half-year net debt decreased to EUR 2.5bn (year-end
2015: EUR 3.3bn). Nevertheless, the Lufthansa Group's IFRS equity ratio
decreased to 10.4 per cent (year-end 2015: 18.0 per cent) due to the lower
discount rate for pension obligations, which decreased to 1.6 per cent
(year-end 2015: 2.8 per cent).

Advance bookings, especially on long-haul routes to Europe, have declined
significantly, in particular due to repeated terrorist attacks in Europe
and to greater political and economic uncertainty since the original
forecast was made in March. As of today, the Executive Board regards a
complete recovery as not likely anymore. At its meeting today, the
Executive Board of Deutsche Lufthansa AG therefore decided to lower the
full year forecast for the Adjusted EBIT from "slightly above previous
year" to "below previous year", despite an earnings performance above
previous year in the first six months.

In particular in the third quarter, the Executive Board expects unit
revenues at the Passenger Airline Group business segment to develop
significantly weaker. The Executive Board now expects that unit revenues at
constant currency will fall by 8 to 9 per cent in the second half-year.
Planned capacity growth at the passenger airlines has been cut from 6.0 to
5.4 per cent for the full year. The Executive Board reiterates its forecast
of declining unit costs excluding fuel and currency effects of about -2 to
-3 per cent in the second half-year. On current projections, fuel costs
will decrease by about EUR 350m in the second half-year. The other business
segments are expecting cumulative earnings on par with the same period last
year in the second half-year. Restructuring costs are already included in
the figures mentioned above.

Deutsche Lufthansa AG will publish its detailed results for the first half
of 2016 on 2 August 2016 at 7.30 a.m. CET, on
www.lufthansagroup.com/investor-relations.

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.


20.07.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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Language:     English
Company:      Deutsche Lufthansa AG
              Von-Gablenz-Straße 2-6
              50679 Köln
              Germany
Phone:        +49 (0)69 696 28000
Fax:          +49 (0)69 696 90990
E-mail:       investor.relations@dlh.de
Internet:     www.lufthansagroup.com/investor-relations
ISIN:         DE0008232125, DE0008232125
WKN:          823212
Indices:      DAX
Listed:       Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime
              Standard), Hamburg, Hanover, Munich, Stuttgart; Regulated
              Unofficial Market in Tradegate Exchange; Terminbörse EUREX
 
End of Announcement                             DGAP News-Service
 
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