Deutsche Lufthansa AG (OTC:DLAKY), the German airline, is set to announce its Q3 results today, with an anticipated revenue of €10.84 billion and net profit of €1.04 billion. These figures are expected to surpass the company's Q3 earnings from the previous year. The forecasted adjusted EBIT (Earnings Before Interest and Taxes) is projected to be at €1.43 billion.
Lufthansa has experienced a significant rebound in bookings, reaching over 90% of pre-pandemic volumes. The airline also predicts its capacity to be approximately 85% of 2019 levels, with an adjusted EBIT expected to exceed the €2.6 billion projection.
Investors' attention will be focused on Lufthansa's views on current trading conditions, the upcoming winter travel season, ongoing supply chain issues, and bottlenecks in the European air traffic system. Following a rise in fuel bills at competitor Air France-KLM, Lufthansa's strategy for managing fuel prices will also be under scrutiny.
In addition to its financial performance, Lufthansa's recent strategic moves are set to be closely examined. These include the acquisition of a 41% stake in ITA Airways and expressed interest in TAP Air Portugal. These strategies indicate Lufthansa's efforts to expand its operations and strengthen its position in the European aviation market.
InvestingPro Insights
The performance of Deutsche Lufthansa AG (ETR:LHAG) can be further understood through real-time data from InvestingPro. As of the last 12 months as of Q2 2023, the company's market cap stands at $8.44 billion with a P/E ratio of 5.22, and a PEG ratio of 0.02. The company has seen a revenue growth of 50.4% and its gross profit margin is at 20.93%.
The InvestingPro Tips suggest that LHAG is a prominent player in the Passenger Airlines industry with consistently increasing earnings per share and an expectation of net income growth this year. However, it's important to note that the stock is currently trading near its 52-week low and has seen a significant price fall over the last three months.
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