DAVY VIEW

Lufthansa had already adjusted guidance downwards on July 14th to €1.4-1.8bn for the second quarter. EBIT for Q2 is €686m (consensus was adjusted EBIT €699m for the quarter and €1987m for the year). Under present plans, the Lufthansa Group’s third-quarter capacity is expected to amount to around 96% of the pre-crisis level. The company assumes that yields in this period will be a low-single-digit-percentage down on 2023 levels. Unit costs are expected to rise to a similar magnitude. Overall, the Lufthansa Group expects its third-quarter adjusted EBIT to fall short of the 2023 level (prior-year period: €1.5bn) due to the challenges at Lufthansa Airlines.