HomeNewsLufthansa Expects Short-Haul Demand to Return it to Profit This Year

Lufthansa Expects Short-Haul Demand to Return it to Profit This Year

Lufthansa expects to return to full-year operating profit this year, with passenger demand for its short-haul European routes set to drive growth.

The German airline giant – which has been heavily supported by Germany’s government through the Covid crisis – has reported its first profit since before the Covid crisis savaged the entire tourism and travel industry; posting a €259m net profit for its second quarter, the three months to the end of June.

Quarterly revenue amounted to €8.5bn; up 164% on the same period last year, although that period was in the midst of heavy international Covid-related travel restrictions.

Lufthansa – which counts Swiss, Eurowings and Brussels Airlines amongst its many subsidiaries – said it expects ticket demand to remain high for the rest of this year. The group reported a load factor – which measures how full its planes are – of 80% for the second quarter.

“This is a strong result after a half-year that was challenging for our guests but also for our employees. Nevertheless, we are optimistic about the future,” Lufthansa chief executive Carsten Spohr said.

Lufthansa remains in talks with its employee unions.

The airline said bookings up to the end of this year are currently around 83% of pre-pandemic levels.

Lufthansa’s flight capacity in its third quarter is likely to be around 80% of pre-Covid levels – less than planned and largely resulting from travel chaos at European airports brought about by staff shortages and surging passenger demand.

Lufthansa has already cancelled more than 2,000 flights since the start of the summer.

It remains in talks with labour unions in Germany, with pilots threatening strike action. Strikes by ground-handling staff last week forced Lufthansa to cancel more than 1,000 flights.

Geoff Percival
Geoff Percival
I have worked in journalism for more than 25 years. I am joining ITTN from The Irish Examiner, having worked there for the past 16 years as a senior business reporter. I have also contributed to, and written for, the likes of Business & Finance, Business Plus, The Sunday Times, The Irish News, Senior Times, and The Sunday Tribune, amongst others titles.

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