Germany-based Lufthansa Group reported its “best results in history,” upon releasing its 2017 financial statement. The carrier’s adjusted earnings before interest and taxes (EBIT) rose a precipitous 70 percent to €3 billion, compared to the previous year, and revenues rose 12.4 percent, year-over-year, to €35.6 billion.
Looking specifically at the logistics arm of the business, Lufthansa reported an adjusted EBIT of €292 million for the year, compared to €242 million for 2016. The carrier saw logistics revenues rise by 21.1 percent to €2.5 billion, y-o-y, while expenses rose at a more modest pace, to €2.4 billion, a 6.7 percent increase. Meanwhile, cargo capacity increased by only 2.5 percent during the year, mainly in its higher-traffic Asia/Pacific and U.S. routes.
The company also alluded to its push toward digitalization, which it recently demonstrated this month by changing its policy to charge a €12 processing fee for air waybills. “We will continue to consistently pursue our modernization,” Carsten Spohr, chairman of the executive board & CEO of Deutsche Lufthansa AG. “And in doing so, we will retain our clear focus on reducing our costs and at the same time raising our quality. This is the only way to sustainably increase our profitability. From a position of strength, we will continue to drive consolidation in Europe.”3 - Readers Like This Post