Lufthansa says it's back as earnings rebound, flags further gains in 2023
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Lufthansa reported a full-year operating profit of €1.51 billion (S$2.16 billion), compared with a loss of €1.6 billion in the previous year.
PHOTO: AFP
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GDANSK, Poland – Germany’s Lufthansa on Friday returned to what it called a “clearly positive result” for 2022 as air travel bounced back, and said it expected a significant improvement in earnings in 2023.
Passenger numbers doubled and net revenue almost doubled last year from 2021, although the figures remained short of pre-pandemic levels.
“Lufthansa is back,” chief executive officer Carsten Spohr said in a statement.
“In just one year, we have achieved an unprecedented financial turnaround... Demand for air travel remains high in 2023,” he added.
Lufthansa shares were up more than 6 per cent on Friday soon after the results were announced, having climbed more than 30 per cent in value since December 2022.
The company reported a full-year operating profit of €1.51 billion (S$2.16 billion), compared with a loss of €1.6 billion in the previous year.
Fourth-quarter profit swung to a profit of €575 million from a loss of €42 million, in line with expectations.
Its balance sheet also improved, with net debt falling to €6.9 billion from €9 billion.
Operating profit was still 34 per cent lower than that seen in pre-pandemic 2019, with the airline noting that passenger numbers were 72 per cent of the level achieved then. Lufthansa is also grappling with high cost inflation as well as a surge in fuel prices.
Yields, however, are expected to stay about 20 per cent above 2019 levels as higher costs are passed on to passengers, a Lufthansa representative said on a call with media.
The company said it expected “further significant improvement” in operating profit this year.
After having had to cancel many flights in 2022,
