Sharply lower yields in both Network and Point-to-Point have contributed to very poor profit numbers. Management also blames IFRS 15 for the poor revenue number, but this had no impact on earnings. IFRS 15 now requires gross revenue generated with passenger fees to be netted against the fees Lufthansa has to pay. This reduced revenue by a good €480m. On the other hand, it was positively impacted by the re-classification of other income into revenue (+€87m).
26 Apr 2018
Yields collapsed by double-digits in Q1
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Yields collapsed by double-digits in Q1
Deutsche Lufthansa AG (LHA:WBO) | 0 0 (-0.3%) | Mkt Cap: 12,564m
- Published:
26 Apr 2018 -
Author:
Hans-Peter Wodniok -
Pages:
2
Sharply lower yields in both Network and Point-to-Point have contributed to very poor profit numbers. Management also blames IFRS 15 for the poor revenue number, but this had no impact on earnings. IFRS 15 now requires gross revenue generated with passenger fees to be netted against the fees Lufthansa has to pay. This reduced revenue by a good €480m. On the other hand, it was positively impacted by the re-classification of other income into revenue (+€87m).