Lufthansa raises 2022 profit outlook on strong demand for air travel
Reuters
Published Oct 17, 2022 11:29AM ET
Updated Oct 17, 2022 12:11PM ET
BERLIN (Reuters) -Lufthansa raised its forecast for full-year adjusted operating profit to over 1 billion euros ($980.40 million) on Monday, boosted by strong demand for air travel that continued its post-COVID recovery.
The company previously expected adjusted operating profit (EBIT) of more than 500 million euros.
Preliminary results for the third-quarter indicated that the airline almost doubled its year-on-year revenue in the third quarter to 10.1 billion euros, with quarterly adjusted earnings coming in at 1.1 billion euros.
The impact from strikes brought down earnings by around 70 million euros, according to the statement by the airline.
"Based on the positive development in the third quarter, the current booking situation, which continues to reflect strong demand for air travel in the coming months ... Lufthansa Group is raising its forecast for the full year," the statement said.
Final quarterly results are due on Oct. 27.
Pilots at Lufthansa's Eurowings began a three-day strike over working hours on Monday, affecting tens of thousands of passengers - the latest in a series of strikes and strike threats by the airline's employees.
Still, Lufthansa's chief executive Carsten Spohr struck a positive note last week about the future of the sector, stating that the re-opening of Japan to tourists and a rise in demand for business travel was keeping it going despite inflation.
Consumer demand for travel in Europe is holding up with consumers willing to pay higher fares, according to recent statements by airlines including Ryanair and EasyJet.
($1 = 1.0200 euros)
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Written By: Reuters
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