Core Viewpoint - Lufthansa is implementing an environmental charge of up to 72 euros ($77) on fares in Europe to address the increasing costs associated with EU climate regulations [2][10]. Group 1: Regulatory Impact - The environmental charge will apply to all flights departing from EU countries, as well as Britain, Norway, and Switzerland, starting January next year [3][10]. - The EU legislation mandates airlines to gradually increase the use of sustainable aviation fuel (SAF) on routes departing EU airports, starting with a requirement of 2% SAF in 2024, increasing to 6% by 2030, and reaching 70% by 2050 [4][12]. - Lufthansa is facing additional costs from changes to the EU's emissions trading system and other regulatory measures [6][11]. Group 2: Financial Performance - After receiving a government bailout during the COVID-19 pandemic, Lufthansa reported strong profits in 2022 and 2023 due to a resurgence in travel demand [7]. - Despite the recovery, the company experienced a significant loss in the first quarter of the year due to a series of strikes [15]. Group 3: Industry Challenges - The aviation sector is particularly challenging to decarbonize, with SAF being a crucial component for meeting emissions targets, although it is currently more expensive to produce [5]. - Airlines for Europe, representing major airline groups including Lufthansa, has expressed concerns about the minimal production of SAF in Europe compared to initiatives in the United States [13]. Group 4: Environmental Goals - Lufthansa aims to halve its net carbon emissions by 2030 compared to 2019 levels and to achieve carbon neutrality by 2050 [14].

German airline firm Lufthansa Group said Tuesday that it would add an "environmental cost surcharge" to ticket prices as soon as this week, which could be as high as 72 euros ($77) for some flights. "The surcharge is intended to cover part of the steadily rising additional costs due to regulatory environmental requirements," Lufthansa said in a statement, pointing to regulations from the European Union and International Civil Aviation Organization. The additional cost will be applied to fights departing fro ...

Deutsche Lufthansa AG has a Zacks Rank of #2 (Buy), while Southwest Airlines has a Zacks Rank of #5 (Strong Sell) right now. Investors should feel comfortable knowing that DLAKY likely has seen a stronger improvement to its earnings outlook than LUV has recently. But this is just one piece of the puzzle for value investors. DLAKY currently has a forward P/E ratio of 4.81, while LUV has a forward P/E of 27.56. We also note that DLAKY has a PEG ratio of 1.58. This popular metric is similar to the widely-known ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: CC0 Public Domain The US Department of Transportation said Monday that three airlines including German carrier Lufthansa have been made to pay over $900 million in passenger refunds due to pandemic-related flight cancellations or changes. The department is also looking into $2.5 million in civil penalties against the airl ...

Financial Data and Key Metrics Changes - The Lufthansa Group reported revenues of €7.4 billion, a 5% increase year-over-year, despite a higher-than-expected quarterly loss of €849 million primarily due to strike effects [9][24] - Adjusted free cash flow was positive at €3 million, although lower than the previous year [9] - The adjusted EBIT loss for the first quarter was €849 million, significantly impacted by strikes and subdued cargo results [24][25] - Net debt decreased, and available liquidity increased to €10.8 billion, supported by a new revolving credit facility [31][32] Business Line Data and Key Metrics Changes - The passenger airlines segment experienced an operating loss of €918 million, up from €512 million the previous year, with strikes accounting for approximately €300 million of the increase [26] - Cargo division profits were down due to tough comparisons from the previous year, but would have achieved breakeven without strike impacts [29] - Lufthansa Technik showed resilient performance with a 4% increase in results, excluding strike impacts, with adjusted EBIT at €260 million [30] Market Data and Key Metrics Changes - The demand for air travel remained strong, with 24 million guests welcomed on board, a 12% increase from the previous year [9] - Bookings for the summer period were up 16% compared to the previous record year, indicating strong demand [18] - The recovery in Asia Pacific is slower, particularly in China, while India and Japan are performing better [19][60] Company Strategy and Development Direction - The company is focused on enhancing customer experience through investments in fleet modernization and the launch of new products like the Allegris cabin [11][12] - Lufthansa City Airlines is set to strengthen the short-haul network and support long-haul growth [15] - The company aims to transform into a global airline group with a multi-hub, multi-airline, multi-brand business model [22] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenging operating environment due to geopolitical instability, rising costs, and supply chain bottlenecks [6][8] - Despite a difficult quarter, management expressed optimism for the rest of the year, citing strong summer bookings and strategic investments [11][18] - The company expects adjusted EBIT to be around €2.2 billion for 2024, with adjusted free cash flow projected to be at least €1 billion [38] Other Important Information - The company proposed a dividend payment of €0.30 per share, indicating financial health and commitment to shareholder value [32] - The company is not considering share buybacks at this time, prioritizing fleet renewal investments instead [60] Q&A Session Summary Question: Regarding Pratt & Whitney compensation and its booking - Management stated that no agreement has been reached yet, and compensation will be recorded as costs are incurred over the coming years [40] Question: Update on ITA and remedies - Management expressed optimism about the ITA deal, emphasizing the need for direct access to global markets and constructive discussions with the EU Commission [41][42] Question: Interplay between new aircraft and capacity growth - Management confirmed that the reduction in capacity from 94% to 92% reflects delays in aircraft deliveries, but does not significantly impact overall capacity plans [46] Question: Update on corporate travel recovery - Corporate travel is expected to reach around 70% of pre-pandemic levels by the end of the year, with Q1 at approximately 65% [50] Question: CASK assumptions and productivity compensation - Management indicated that CASK guidance includes productivity arrangements, with expected increases in staff costs due to recent wage agreements [73] Question: MRO business and supply chain challenges - Management noted that while MRO margins are expected to remain flat, the overall performance is strong, and the supply chain challenges are creating both positive and negative impacts [55][67]

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Strikes have taken a deep bite into Lufthansa balance sheet but the airline still expects to end 2024 with an operating profit of 2.2 billion euros. German airline giant Lufthansa reported a hefty first-quarter loss Monday and downgraded its 2024 outlook due to recent strikes, while warning of risks from conflict in the Middle E ...

Airlines flying to the Middle East are beginning to make changes to their schedules after Iran launched over 300 drones and missiles at Israel in a brutal assault. Reuters reported that German airline Lufthansa was suspending scheduled flights to Tel Aviv, Amman and Erbil until Tuesday. The company also announced it would be suspending flights to Beirut and Tehran until at least Thursday, due to violence in the Middle East.Lufthansa, which is also linked to Swiss and Austrian airlines, said it was evaluatin ...

Deutsche Lufthansa AG (OTCQX:DLAKF) Q4 2023 Earnings Conference Call March 7, 2024 6:30 AM ET Company Participants Dennis Weber - Head of Investor Relations Carsten Spohr - Chief Executive Officer Remco Steenbergen - Chief Financial Officer Conference Call Participants Harry Gowers - JPMorgan Jaime Rowbotham - Deutsche Bank Tobias Fromme - Bernstein Stephen Furlong - Davy Research Muneeba Kayani - Bank of America James Hollins - BNB Paribas Ruairi Cullinane - RBC Capital Markets Sandra Hadiza - HSBC Neil Gl ...

Internal Full Year 2023 Results Carsten Spohr, CEO Remco Steenbergen, CFO Frankfurt, 7 March 2024 Internal Full Year 2023 Results Carsten Spohr, CEO Review 2023 Frankfurt, 7 March 2024 A record summer made 2023 the third most profitable year in the Group's history | --- | --- | --- | --- | |--------------------------|-----------|-------|----------------------------------------| | | | | | | EUR 35.4bn Revenues +15% | vs. 2022 | | EUR 2.7bn Adjusted EBIT +76% vs. 2022 | | Passengers | Adj. ROCE | | Regularity ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: It was the second straight year of profits. German airline giant Lufthansa more than doubled its profits in 2023, extending a rebound from the coronavirus pandemic even as it faces fresh risks from a wave of industrial action. The group reported Thursday a net profit of 1.67 billion euros ($1.82 billion), up substantially from ...