Lufthansa rises as Q3 profit beats expectations

Deutsche Lufthansa AG

Tue 08:59

** Shares in German airline group Lufthansa LHAG.DE rise 2.5% after the carrier's Q3 operating profit came in slightly ahead of expectations, as strong demand and cost discipline help offset higher fuel costs
** Lufthansa reports Q3 adjusted EBIT of €1.4 billion ($1.57 billion), above company-compiled analyst expectations of €1.37 billion and up 6% y/y despite fuel costs rising by more than €400 million
** Brokerage Metzler says Lufthansa managed a challenging environment well, with higher prices for new bookings while Cost per Available Seat Kilometre rose only 0.5%, better than the original forecast of 1%
** Bernstein analyst Alex Irving says the more resilient results suggest Lufthansa's turnaround programme may be starting to bear fruit despite the challenging fuel environment
** Lufthansa narrows FY26 adjusted EBIT guidance to €1.7-2.0 billion from €1.7-2.2 billion, citing higher jet fuel costs, while still expecting capacity to remain flat
** Including today's rise, the stock has dropped by 8.76 % YTD
     
     
($1 = 0.8937 euros)

(Reporting by Basile Day)
((Basile.Day@thomsonreuters.com))