Lufthansa banks have higher capacity after being profitable in 2022

Deutsche Lufthansa AG

is working to expand capacity after turning a profit in the fourth quarter and full year 2022 as it expects air travel demand to remain strong after years of restrictions and crippling border closures. branch.

The German shipping group on Friday announced a net profit of 791 million euros ($838.2 million) for the year and 307 million euros for the fourth quarter. The company is at a loss in 2021, with an annual loss of EUR 2.19 billion and a loss of EUR 314 million in the fourth quarter.

Travel restrictions and border closures brought international traffic to a near standstill at the height of the Covid-19 pandemic. Now, airlines are scrambling to expand capacity to meet the growing demand for international air travel.

Lufthansa on Thursday said it had ordered 22 long-haul aircraft from Airbus SE and Boeing Co. about $7.5 billion at list prices will be delivered starting mid-decade.

To date, the airline has ordered 10 Airbus A350-1000s, five Airbus A350-900s and seven Boeing 787-9s, although it said it is in advanced negotiations to purchase more long-haul aircraft. Lufthansa is also planning to reactivate four A380s, the world’s largest passenger jet, on routes to the US starting in July.

The airline expects to take delivery of a total of 108 long-haul aircraft over the next few years as it retires six older aircraft types, including the Boeing 747-400, the Airbus A340-600 and the A340-300.

Lufthansa served 102 million passengers last year, more than double that of 2021.

Fourth-quarter revenue increased 52% to EUR 8.88 billion. Adjusted earnings before interest and taxes – Lufthansa’s preferred measure of profit – came in at EUR 575 million from an adjusted loss of EUR 42 million. The Group expects adjusted EBIT to improve significantly this year.

Analysts had forecast a net profit of EUR 875 million for the year and EUR 386 million for the fourth quarter on revenue of EUR 9.21 billion and adjusted income of EUR 605 million, according to a consensus provided by the company. grant.

Lufthansa said air travel demand during the upcoming Easter and summer holidays is particularly strong, with Spain, Italy, Greece and other Mediterranean countries being popular destinations. while the demand for flights to and from North America is also very high.

The airline expects capacity to increase by an average of 85% to 90% this year compared to 2019, although it predicts bottlenecks in the European airline system.

Write to Mauro Orru at [email protected]; @MauroOrru94


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