Lufthansa to End 2022 Strong, Raises Profit Forecast
Strong demand for air travel has raised passenger earnings for the Lufthansa Group above pre-pandemic levels.
Strong demand for air travel has raised passenger earnings for the Lufthansa Group above pre-pandemic levels.
DALLAS — After a strong end to 2022, the Lufthansa Group (LH) has raised its full-year profit forecast to around US$1.6bn (€1.5bn). This came after the final months of 2022 exceeded expectations for LH.
During the third quarter in October, LH outlined its earnings stating it would be more than €1bn. But on December 13, the carrier announced that earnings for November and October were better than expected and that there was a positive trend toward bookings for the coming months.
Lufthansa commented that the strong demand for air travel has raised average passenger earnings above pre-pandemic levels. This comes as Lufthansa Cargo and Lufthansa Technik have had record-breaking years. On March 3, 2023, the airline group will report its full-year results.
The group has changed its yearly earnings for the second time, having done so in October following a successful third quarter. This is despite facing early-year losses and operational disruptions because of strikes.
Both Lufthansa Cargo and Lufthansa Technik are diverse parts of the group that will have record-breaking years. Lufthansa Cargo had a strong year as cargo demand increased, and the cargo division stated that it plans to exceed its US$1.58bn (€1.5bn) profit in 2021.
Lufthansa’s new profit forecast is a major transition from how the group suffered during the pandemic. During the first few months, LH said its loss had reached up to US$1m per hour, and throughout the first few months of 2022, LH posted a loss of US$600m.
Furthermore, following this strong recovery year, LH is in the midst of hiring 20,000 new employees allowing the carrier to fully return to pre-pandemic levels.
https://airwaysmag.com/lufthansa-technik-avianca-tcs/
Featured image: D-AIXC Lufthansa Airbus A350-941 A359 JFK KJFK. Photo: Francesco Cecchetti/Airways
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