Deutsche Lufthansa AG (Lufthansa Group) reported that it generated revenues of €31.7 billion ($34.17 billion) in 2016, a decline of 1.2% year over year. Adjusted EBIT for the year amounted to €1.75 billion ($1.88 billion), a decline of 3.6% YoY.  At the same time, net profit for 2016 was €1.77 billion ($1.9 billion), up by 4.6% YoY.

The group said that as expected, earnings before strike costs of €100 million ($107.8 million) came in at previous year’s level. The Adjusted EBIT margin for 2016 was 5.5%, a decline of 0.2 point.

Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG, said: “In a very demanding market environment.”

Spohr considered that the group has successfully kept the margins at its record prior-year levels, through consistent capacity and steering measures and, above all, through our effective cost reductions. At the same time, Lufthansa group has been expanding the commercial joint ventures for the Network Airlines, fully acquiring Brussels Airlines and concluding the comprehensive wet-lease agreement with Air Berlin which is claimed to have strengthened its strategic position.

“In 2017,” Spohr continued, “it remains necessary to further reduce our costs. This is the only way to meet and master the decline in unit revenues and the higher fuel expenses, and at the same time to maintain and strengthen our financial stability and our investment capacities.”

Lufthansa and the pilot's union Vereinigung Cockpit (VC) reached an agreement on the 15th of March 2017 regarding all previously unresolved collective bargaining matters. In a declaration of intent, the negotiating partners agreed on forward-thinking provisions for transitional payments, pension plans, the framework agreement on employment conditions and the collective wage agreement for the pilots of Lufthansa, Lufthansa Cargo and Germanwings.

The Lufthansa Group has also announced that it has invested € 2.2 billion in 2016, some € 300 million less than originally planned. The total investment volume was thus 13% down on the prior-year period, owing largely to delays in new aircraft deliveries.

The group said that it will be realigning its financial reporting to its three strategic pillars of Network Airlines, Point-to-Point Airlines and Aviation Services from 2017 onwards.

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