Sees FY adj free cashflow significantly below 1 bln eur (Il Sole 24 Ore Radiocor) - Berlin , 12 Jul - The German airline Lufthansa said it has cut group guidance for the full year and now anticipates an adjusted EBIT of 1.4-1.8 billion euros, down from 2.2 billion previously.

This outlook is largely dependent on the earnings development at Lufthansa Airlines and the traditionally important fourth quarter at Lufthansa Cargo, the air carrier noted.

At a group level, Lufthansa also anticipates adjusted free cash flow for the year to be "significantly below" 1.0 billion euros. It had previously guided for at least 1.0 billion euros. It noted that this new guidance was based on its new adjusted EBIT outlook and also came among uncertainties around capex development in the second half of the year.

According to preliminary results for the group, Lufthansa achieved an adjusted EBIT of 686 million euros in the second quarter of 2024, down from 1.1 billion in the year earlier. Adjusted free cash flow of Lufthansa Group amounted to 573 million euros.

In the second quarter, Lufthansa Airlines posted a quarterly profit of 213 million euros, down from 515 million the year earlier. Lufthansa Airlines recorded a half-year loss of 427 million euros against a profit of 149 million the year earlier. "Lufthansa Airlines is particularly affected by the challenges posed by the negative market trend and by inefficiencies in the flight operations of Lufthansa and Cityline, also due to delayed aircraft delivery. It is becoming increasingly challenging for Lufthansa Airlines to break even for the full year. To counteract this, a comprehensive turnaround program is being launched," the company said.

For other passenger airlines as well as Lufthansa Technik and Lufthansa Cargo, earnings for the second half of the year are expected to be broadly at the previous year's level and in some cases higher.

Lufthansa will publish final second quarter results on July 31.

AAA-Hob

(RADIOCOR) 12-07-24 13:25:25 (0310) 5 NNNN