Financial results will be better than anticipated, according to another significant European airline.
Thanks to solid demand for air travel and enduring strength in cargo, German flag carrier Lufthansa (LHAB) (LHA) has quadrupled its profit estimate for 2022.
The current booking situation “continues to reflect strong demand for air travel in the coming months”, Lufthansa (LHAB) (LHA) said in a stock exchange statement on October 17, 2022. Meanwhile, the group expects another record result from its cargo division.
Because of the better-than-expected performance, Lufthansa Group released its preliminary third-quarter data early. Due to higher-than-expected performance, rival IAG, which owns British Airways and Iberia, also disclosed some third-quarter results early on October 13, 2022.
Major airlines have provided a more optimistic assessment of current booking trends, notwithstanding Eurocontrol’s more pessimistic estimate for the recovery of European air traffic.
The German airline firm reported that its third-quarter sales increased by over double to €10.1 billion ($9.9 billion), from €251 million ($247 million) the year prior. Adjusted earnings before interest and tax (EBIT) also nearly doubled to €1.1 billion ($1.08 billion).
Lufthansa (LHAB) (LHA) now anticipates achieving adjusted EBIT of more than €1 billion ($985 million) for the entire year. In the past, it anticipated a profit of more than €500 million ($493 million).
According to Lufthansa (LHAB) (LHA), the third-quarter earnings number includes a €70 million ($69 million) blow from pilot strikes. However, pilots at its low-cost subsidiary Eurowings are now on strike in a dispute over working hours, which will have an impact on fourth-quarter performance. Pilots from the mainline Lufthansa (LHAB) (LHA) brand went on strike in September over wages.
On October 27, 2022, the Lufthansa (LHAB) (LHA) group will release its complete third-quarter results.