Lufthansa Profit Advances in 2016

German airline operator Deutsche Lufthansa has posted an increase in net profit for 2016 helped by higher adjusted earnings at its passenger airline group which offset a decline in its cargo business where pricing declines dragged.

The company, whose passenger airlines include Lufthansa Passenger Airlines, SWISS, Austrian Airlines and Eurowings, posted net profit worth 1.78 billion euros ($1.91 billion) in the 2016 year, up 4.6% from the prior year, according to results published on Thursday. Adjusted earnings before interest and tax (EBIT), which included 100 million euros of strike costs, fell by 3.6% to 1.75 billion euros. When the cost of the strikes was deducted, adjusted EBIT was broadly in line with the previous year’s reading. Revenue fell by 1.2% to 31.7 billion euros.

Broken down by business area, adjusted EBIT at the Passenger Airline Group rose by 2.5% to 1.53 billion euros while the same metric within Lufthansa Cargo, the group’s logistics specialist, posted a loss of 50 million euros. Lufthansa Technik, which provides maintenance, repair and overhaul services for civilian commercial aircraft, posted adjusted EBIT of 411 million euros, down 9.5% from one year earlier. And, adjusted EBIT at the group’s catering and in-flight services arm advanced by 5.1% to 104 million euros.

By Stephen Holmes