COLOGNE (dpa-AFX) - Lufthansa AG (DLAKF, DLAKY) said, for fiscal 2020, the magnitude of the expected decline in adjusted EBIT is currently not predictable. The Lufthansa Executive Board has decided to waive 20 percent of its basic remuneration in 2020. To counter Corona crisis, the company plans comprehensive savings measures including: far-reaching capacity reductions, 'short-time working' mechanism in home markets and suspension of dividend.
Carsten Spohr, Chairman of the Executive Board, said: 'We have to counter this extraordinary situation with drastic and sometimes painful measures. The longer this crisis lasts, the more likely it is that the future of aviation cannot be guaranteed without state aid.'
For fiscal 2019, Lufthansa reported that its consolidated net profit declined 44 percent to 1.2 billion euros. Adjusted EBIT margin was 5.6 percent compared to 8.0 percent. Adjusted EBIT was at 2.0 billion euros. The company said the main drivers for the decline were a 600 million euro increase in fuel costs and a noticeable economic slowdown, especially in home markets.
Fiscal 2019 revenue rose by 2.5 percent to 36.4 billion euros. Unit revenues of the passenger airlines declined by 2.5 percent, adjusted for exchange rate effects.
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