The North Atlantic is already back to being the most important long-haul market despite the US remaining closed to UK and EU travellers.
That is according to Lufthansa chief executive Carsten Spohr who hailed the second quarter of this year as “a major step out of the crisis” as he reported results for the three months to June.
Spohr described the US decision not to open to travellers from Europe so far as “disappointing” but said: “We judge it only a matter of time.
“The North Atlantic is already back to our most important long-haul market even though we can only sell on one side of the market, and we judge the US government will make an announcement soon to open for fully vaccinated passengers.”
The EU opened to fully vaccinated US travellers in mid-June and the UK lifted quarantine restrictions on US citizens arriving from Monday.
Spohr said: “We’re very encouraged that travel restrictions finally started to ease and we’re confident this will continue.
“Demand for European leisure destinations started to pick up from the end of April. The UK has started to allow vaccinated travellers to enter from countries such as Germany,
“I’m certain the second quarter was a major step out of the crisis. We hopefully are in the last phase of the pandemic.”
The Lufthansa group reported a half-year loss of €1.8 billion and losses for the three months to June of €952 million.
But Spohr reported a surge in bookings for the summer saying: “We have seen a huge pick up in Mediterranean destinations.
“We expect demand to be 50% of the 2019 level in August.”
Lufthansa and sister carriers Swiss, Austrian Airlines, Brussels Airlines and Eurowings will offer roughly 50% of 2019 capacity in August and September having reached 47% at the end of July, and plan to raise this to 60% for the final quarter of the year.
Spohr noted the plans are “based on assumptions that the US opens by the end of the third quarter, there is a recovery in business travel and Asia-Pacific markets start to recover by the end of the year”.
He argued: “We could easily add another 10%-15% capacity by the end of the year if there is demand. We have the flexibility if we need it.
“It’s difficult to say what is coming, but overall with double vaccination you are able to travel.”
Spohr added: “We expect the holiday season to be lengthened but VFR [visiting friends and relations] to drive the next phase of recovery.”