Lufthansa predicts profitable quarter as air travel picks up

Robert Besser
10 May 2022, 05:45 GMT+10

Lufthansa said it anticipates returning to profitability as early as this quarter, based upon the renewed demand for business and leisure travel, coupled with its raising ticket fares.
Lufthansa group, which owns Lufthansa, Swiss, Austrian and Brussels Airlines, saw sales double in the first quarter, as the public returned to traveling after two years of lockdowns and travel restrictions.
However, Lufthansa's first-quarter operating losses were larger than analysts had expected.

FRANKFURT, Germany: Lufthansa has said it anticipates returning to profitability as early as this quarter, based upon the renewed demand for business and leisure travel, coupled with its raising ticket fares.

Lufthansa group, which owns Lufthansa, Swiss, Austrian and Brussels Airlines, saw sales double in the first quarter, as the public returned to traveling after two years of lockdowns and travel restrictions.

However, Lufthansa's first-quarter operating losses were larger than analysts had expected.

"As the pandemic subsides, families, friends and business partners around the world are traveling to meet each other again. And I think the world is also coming to realize how important friendly personal contacts are," Chief Executive Carsten Spohr said at a news conference.

Lufthansa also reported this week that first quarter revenues doubled from one year earlier to 5.36 billion euros, exceeding analysts' average forecast for sales of 5.12 billion euros. At the same time, it was unable to reduce losses as much as expected due to greatly increased fuel prices due to Russia's war in Ukraine.

Lufthansa reported that its adjusted loss before interest and taxes narrowed to 591 million euros in the first quarter, compared to a loss of 1.05 billion euros for first quarter 2021.

"We live in a world where we see incredible inflation and price increases. We see that in commodities, hotels, rental cars. And I think price increases are significantly more in those other industries than for us," finance chief Remco Steenbergen added.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Europe Sun.

More Information

22 ℃

Partly Cloudy in Istanbul/Ataturk

International

Section

Tornado hits western German city; dozens injured, 2 dead

BERLIN, Germany: At least 43 people were injured after a tornado struck the western German city of Paderborn on May ...

American arrested, Chinese officials charged with spying in US

WASHINGTON D.C.: The Department of Justice has said that an American citizen and four Chinese intelligence officers have been charged ...

To help US businesses, 35,000 foreign workers to be taken in

WASHINGTON D.C.: Due to the inability of businesses to hire enough workers, the U.S. has announced that it will grant ...

US Senate to vote on resolution urging probe of beef price fixing

WASHINGTON D.C.: U.S. senators Elizabeth Warren and Mike Rounds have introduced a bipartisan resolution requesting the Federal Trade Commission (FTC) ...

Strain of Ukraine war causes Russian defense spending to increase 40%

MOSCOW, Russia: According to preliminary data released by the finance ministry this week, almost three months after Moscow's invasion of ...

After China bows out, new decision expected on Asian Cup host

KUALA LUMPUR, Malaysia: After China's decision to not host the 2023 Asian Cup, a choice for a new host will ...

Business

Section