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Even more trips: Lufthansa significantly reduces losses

Status: 05/05/2022 08:40

Higher ticket prices and a recovery in the travel industry ensure that Lufthansa is recovering from the Corona low. The group can almost halve its losses at the start of the year.

At the beginning of the year, the business of Europe’s largest airline, Lufthansa, had again improved a lot. From January to March, sales doubled to € 5.4 billion compared to the same period last year, very weak due to the krona, the company announced Thursday. As a result, the airline group made a loss of 591 million euros after about one billion a year ago. Analysts interviewed by the company had expected revenue of € 5.1 billion and adjusted operating profit of € 558 million.

“New bookings are increasing week by week”

Demand has increased significantly in recent weeks, said Lufthansa chief Carsten Spohr. “New bookings are increasing week by week – among business travelers, but especially between holidays and private travel.”

The group, which in addition to the German airlines Lufthansa and Eurowings also includes Swiss, Austrian and Brussels Airlines, is planning a flight offer equal to 75% of the pre-crisis level of 2019 for the whole year. The result in daily business is expected to continue to improve compared to the loss of billions in the second year Corona 2021. However, the board of directors does not dare to make an exact forecast, also due to the recent extreme jumps in the price of kerosene.

Higher ticket prices for customers

Customers need to be prepared for higher ticket prices: according to Lufthansa estimates, average revenues in the further course of the year should be at least a high single-digit percentage over the previous year. It would be even more than before the pandemic in 2019.

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