'Left the pandemic behind': Lufthansa reports healthy profit, extending recovery

On Thursday, German airline giant Lufthansa said it had "left the pandemic behind", as it reported a robust third-quarter net profit, and predicted strong demand in the months ahead.

Lufthansa had made huge losses when the coronavirus brought global air travel to a halt, and had to be bailed out by the German government in 2020.

However, a strong rebound in demand as economies reopen, has lifted the company's fortunes.

The net profit of €809 million from July to September compares to a loss of €72 million in the same period a year earlier.

CEO Carsten Spohr said the group had "left the pandemic behind and is looking optimistically into the future".

"The desire to travel, and thus the demand for air travel, continues unabated."

All business segments — from passenger airlines to logistics — contributed to the result, he said.

The results extend the group's recovery, after it reported its first net profit in August since the pandemic.

Third quarter revenues almost doubled year-on-year to €10.1 billion.

In the third quarter, more than 33 million passengers flew with the airlines of the group — significantly higher than a year earlier.

The group's passenger airlines returned to profitability, with an adjusted operating profit of €709 million, as compared to a loss in the previous year.

The group — which includes Eurowings, Austrian, Swiss and Brussels Airlines — had already announced earlier this month that it was significantly raising its earnings forecast for 2022 due to strong demand.

It confirmed that it expected adjusted operating profits of more than €one billion for the year.

In August, Lufthansa reported its first net profit since the pandemic.

Strike action by pilots and ground staff over the July-to-September period cost the airline around €70 million, it said.

However, Lufthansa pilots agreed last month not to strike again until at least the end of June next year, after reaching a deal with the bosses on higher pay.

The group made huge net losses of €6.7 billion in 2020 and €2.2 billion in 2021 due to the pandemic, but its finances have stabilised earlier than expected, due to a pent-up demand for air travel.

The German government sold its remaining stake in Lufthansa last month, putting the airline back in private hands.

ALSO READ:

• Lufthansa back in private hands as Germany sells rescue stake

• Tens of thousands of passengers affected by first day of Eurowings strike

• German airline Lufthansa cancels 800 flights as pilots go on strike

• Europe