Lufthansa Group is confirming a stronger full-year outlook, as the company posted its strongest-ever quarterly revenue performance – a figure of €11.2 billion ($13 billion) – for the three months to 30 September.
While the company’s operating profit for the period, at €1.3 billion, was marginally down on the previous year, the group points out that the operating profit for the first nine months rose by €300 million, reaching €1.48 billion.
It is forecasting as “significantly” higher operating profit for the full year compared with the previous €1.6 billion.
“Demand remains stable, with the premium segment continuing to be particularly strong, and the booking outlook for the fourth quarter is positive,” says chief executive Carsten Spohr.
The company says its passenger airline division – which turned in a substantially-better operating profit of €914 million for the nine months – has benefited from cost control and “significantly improved” operational stability.
Passenger airlines achieved their highest level of punctuality and regularity since the start of the Covid-19 pandemic, and the financial impact of disruption was reduced by €200 million.
This has laid “groundwork” for “future profitability improvements” at the division, says Lufthansa Group.
“At the same time, the long-awaited aircraft deliveries are finally picking up speed, as are the extensive product improvements on our long-haul fleets,” says Spohr.
Freight division Lufthansa Cargo has more than trebled its nine-month operating profit, to €184 million, including a rise to €49 million in the third quarter.
The group says the cargo division has been “buoyed” by strong business from Asia as well as a “generally stable” level of market demand.
It is continuing to integrate the freight capability of Italy’s ITA Airways, adding Rome as a cargo hub, while its Swiss World Cargo operation joined the Lufthansa Cargo and United Cargo joint venture in August.
Lufthansa Group chief financial officer Till Streichert says the fourth quarter is “particularly important” to the cargo division, but the group is “confident” that the positive passenger airline development will underpin the full-year outlook.
Maintenance firm Lufthansa Technik’s performance for the quarter, however, was relatively weak. Its operating profit slipped by nearly 20% to €130 million – a situation which the group attributes to the exchange rates from the weaker US dollar, as well as negative effects of “punitive” US tariffs.
“In the medium term, Lufthansa Technik intends to pass the [tariff impact] on to its customers,” says the group.
It adds that shortage of materials on the global market, with delays in deliveries by manufacturers of aircraft and engines, continues to “constitute a burden”.
“Staff shortages in production areas and related extensive skill-building measures are also having a negative impact,” it adds.
Lufthansa Technik’s nine-month operating profit was down 6% to €440 million, and the group says it will “no longer be able to achieve” a previously-forecast increase in operating profit for the full year. Earnings will be in line with last year’s level.
