Another major European carrier says financial results will be better than expected. German flag carrier Lufthansa (LHAB) (LHA) has doubled its profit target for 2022, thanks to strong air travel demand and continuing strength in cargo.
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.
Lufthansa Group announced some preliminary third quarter figures early because of the better than expected performance. Rival IAG, which owns British Airways and Iberia, also released some third quarter figures early on October 13, 2022, because trading was stronger than it initially predicted.
While Eurocontrol has issued a gloomier forecast for European air travel recovery, major airlines have given a more upbeat view of current booking trends.
War, rising costs to delay European air traffic recovery, predicts Eurocontrol
Recession, what recession? European carriers say bookings are holding up
Despite current challenges, is there growth ahead for European aviation?
The German airline group said it almost doubled revenue in the third quarter to September 30, 2022, to €10.1 billion ($9.9 billion), while adjusted earnings before interest and tax (EBIT) jumped to €1.1 billion ($1.08 billion), from €251 million ($247 million) in the previous year.
For the year as a whole, Lufthansa (LHAB) (LHA) now expects it will achieve adjusted EBIT of over €1 billion ($985 million). It had previously expected profit of over €500 million ($493 million).
The third-quarter profit figure includes a €70 million ($69 million) hit from pilot strikes, Lufthansa (LHAB) (LHA) added. Pilots from the mainline Lufthansa (LHAB) (LHA) brand went on strike in September over pay, but pilots at its budget unit Eurowings are currently on strike in a row over working hours, which will affect fourth-quarter results.
Lufthansa (LHAB) (LHA) group will report full third-quarter results on October 27, 2022.