Deutsche Lufthansa is set to announce its second quarter results on Thursday. Here are the key details:
Revenue Forecast
The German airline is expected to report a revenue of 9.40 billion euros ($10.34 billion), according to a company-provided consensus. This forecast surpasses the 8.46 billion euros revenue achieved in the same quarter last year.
Earnings Forecasts
The consensus estimates net profit to reach 713 million euros, surpassing last year’s figure of 259 million euros. Adjusted earnings before interest and taxes (EBIT) – Lufthansa’s preferred measure of profitability – is projected to be around 1.04 billion euros, compared to 393 million euros in the previous year.
Key Factors to Watch
Capacity
Lufthansa announced in May that second-quarter capacity is expected to reach approximately 82% of 2019 levels. Analyst Conor Dwyer from Morgan Stanley predicts a similar capacity at 82%, with a load factor (a measure of seats sold) at 84%.
Demand
Investors should pay attention to any indications the group provides regarding demand trends, particularly in the Asian market due to Lufthansa’s exposure to the continent.
Disruption
Given Lufthansa’s proximity to France, it is important to monitor any remarks made about the extent of disruption caused by air traffic control strikes.