Deutsche Lufthansa, one of Germany's leading airline groups, has reported earnings for the third quarter that outperformed analysts' expectations. Thanks to what the company refers to as a "record summer," it also anticipates robust demand for air travel in the upcoming months, including in premium cabins.
During the three months ending in September, the German carrier group generated a revenue of 10.28 billion euros ($10.87 billion), representing an 8% increase compared to the same period last year. Within this timeframe, Lufthansa's airlines, including Swiss, Austrian Airlines, Brussels Airlines, and Eurowings, transported over 38 million passengers, a significant rise from the 33 million passengers in Q3 of 2019.
Carsten Spohr, Chief Executive of Deutsche Lufthansa, expressed optimism for the future: "Even though the geopolitical situation remains challenging, our booking outlook gives us reason to be positive - not only for a very good group result this year, but also beyond."
The group continued to observe strong demand in October, with passengers actively securing seats for the upcoming Christmas season. Impressively, over 80% of the passengers the airline expects to carry during the fourth quarter have either already booked their flights or have flown in October.
Deutsche Lufthansa looks forward to prosperous times ahead, building upon its recent successes and anticipating continued growth moving forward.
Demand for Flights Remains High
Lufthansa, one of the leading airlines, has witnessed a strong demand for both short-haul and long-haul flights, especially among leisure travelers. The airline has also reported an increase in bookings for business class and first class seats.
In the last quarter, Lufthansa witnessed a significant surge in net profit, which rose by 47% to EUR1.19 billion. The airline's preferred measure of profitability, adjusted earnings before interest and taxes, reached EUR1.47 billion, marking a substantial increase from EUR1.12 billion and achieving an adjusted margin of 14.3%.
According to analysts' forecasts based on a company-provided consensus, Lufthansa was expected to generate revenue of EUR10.84 billion, profit of EUR1.04 billion, and adjusted earnings of EUR1.43 billion.
Cost Reduction Efforts
Despite facing inflationary pressures, Lufthansa managed to decrease its costs by 0.9% compared to the previous year. However, the airline had to contend with increasing fees, personnel and maintenance expenses, as well as higher fuel costs in recent weeks.
Chief Financial Officer Remco Steenbergen emphasized the need to improve operational reliability, productivity, and efficiency in order to mitigate the impact of inflation. These areas are still below pre-crisis levels, providing further room for improvement.
Outlook for the Future
Lufthansa is optimistic about the current quarter, expecting the capacity to reach approximately 91% of the 2019 levels. The airline has also confirmed its adjusted earnings before interest and taxes (EBIT) forecast for the year, projecting a figure surpassing EUR2.6 billion.
For more information, please contact Lufthansa directly.