Lufthansa Group has raised its annual profits forecast to more than €1 billion on the back of a strong post-Covid summer recovery.
Revenue almost doubled year-on-year to €10.1 billion in the three months to September, delivering adjusted earnings of around €1.1 billion, despite a €70 million hit from strike action.
The German airline combine said: “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 and the expectation of another record result from Lufthansa Cargo in 2022, Lufthansa Group is raising its forecast for the full year, excluding currently unforeseen circumstances.”
The group revealed that net debt declined slightly to around €6.2 billion in the third quarter from €6.4 billion at the end of June.
British Airways owner IAG last week reported no signs of weakness in forward bookings.
The Lufthansa update came ahead of final quarterly results being issued on October 27 and followed the carrier unveiling new-look suites for first and business class to be introduced from next year.
More than 100 new aircraft, such as Boeing 787-9s, Airbus A350s and Boeing 777-9s, will fly to destinations around the world with the new ‘Allegris’ service. Aircraft already in service, such as the Boeing 747-8, will be converted.
Lufthansa Group aims to spend €2.5 billion in product and service alone by 2025 “to further improve the customer experience at every stage of the journey – from initial booking, throughout the airport, lounge and border experience, to customer requests even after the flight”.
Chief executive Carsten Spohr said: “We want to set new, unprecedented standards for our guests.
“The largest investment in premium products in our company’s history underpins our claim to continue to be the leading western premium airline in the future.”