By Mauro Orru
Deutsche Lufthansa is scheduled to report results for the second quarter on Thursday. Here’s what you need to know:
REVENUE FORECAST: The German airline is expected to post revenue of 9.40 billion euros ($10.34 billion), according to a company-provided consensus. The forecast is above revenue of EUR8.46 billion that Lufthansa reported for last year’s second quarter.
EARNINGS FORECASTS: Net profit should come in at EUR713 million, according to the consensus, above last year’s EUR259 million figure. Adjusted earnings before interest and taxes–Lufthansa’s preferred measure of profitability–is expected to reach EUR1.04 billion compared with EUR393 million last year.
WHAT TO WATCH:
–CAPACITY: Lufthansa said in May that second-quarter capacity should reach around 82% of 2019 levels. Morgan Stanley’s Conor Dwyer is forecasting capacity at 82%, with a load factor–a measure of seats sold–at 84%.
–DEMAND: The group could give indications on demand trends it is seeing, and any commentary on Asia should be looked at given Lufthansa’s exposure to the continent, Dwyer wrote in a note to clients.
–DISRUPTION: Any remarks on the magnitude of disruption from air traffic control strikes should be monitored given Lufthansa’s proximity to France, Dwyer said.
Write to Mauro Orru at [email protected]; @MauroOrru94
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