- Lufthansa reports results after raising outlook last week
- Q3 returns rise 23% to record high
- Says expects to turn an operating profit in the fourth quarter
- It plans to offer around 80% of pre-pandemic capacity in the fourth quarter
FRANKFURT, Oct 27 (Reuters) – Germany’s Lufthansa ( LHAG.DE ) gave an upbeat forecast for air travel on Thursday, saying it expected demand to remain strong, with average yields high, as tourists spend on tickets.
Consumer demand for travel in Europe is holding up despite record inflation in the euro zone, with travelers willing to pay higher fares, according to recent statements from airlines such as Ryanair ( RYA.I ) and easyJet ( EZJ.L ).
Lufthansa said on Thursday that continued high demand for premiums from leisure travelers was particularly notable, with load factors in Business and First Class surpassing pre-pandemic levels. Its yields, a measure of profitability, rose 23% in the third quarter compared to 2019, hitting a new record.
“With this kind of feedback even in late October, when the airline should have had significant visibility in November (one of the softest months in a typical year), we could be looking at an industry confounding fears of a macro-driven slowdown. even as the Europeans turn up the heat,” Bernstein analyst Alex Irving said.
Lufthansa plans to offer around 80% of its pre-pandemic capacity on its airlines in the fourth quarter, which should help it achieve a quarterly operating profit, it said as it released full quarterly financial results.
The group last week raised its full-year adjusted operating profit forecast to more than 1 billion euros ($980 million), boosted by strong air travel demand that continued its post-COVID recovery.
The company previously expected an adjusted operating profit (EBIT) of more than 500 million euros.
In the third quarter, it posted adjusted EBIT of 1.13 billion euros ($1.14 billion), up from 251 million a year earlier, it said on Thursday.
($1 = 0.9930 euros)
Report by Ilona Wissenbach; written by Maria Sheahan, edited by Kirsti Knolle and Jason Neely
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