Lufthansa Lifts Profit Outlook as Travelers Pay Up for European Trips
Photo Credit: Lufthansa sees robust travel demand through the fall. (Fraport AG) Fraport AG
Skift Take
European airlines are flying from strength to strength this year with talk of an economic slowdown seemingly just a memory.
Nothing, it seems, can slow the Lufthansa Group down. Robust travel demand, particularly for its premium offerings, drove record profits in the second quarter and has lifted its outlook for the rest of the year.
"Demand remains extraordinarily strong," group CEO Carsten Spohr said during a June quarter earnings call Thursday. That is driving its forecast of a roughly 25% increase in revenue earned per passenger mile flown, or unit revenues, in the third quarter. The biggest gains are to Asia, where many countries only began reopening late last year, and across the Atlantic to the Americas.
Demand for air travel, however, looks a lot different than it did four years ago:
Leisure demand continues to dominate, particularly from the premium leisure travelers who have become a force in the global airline industry throughout the Covid recovery. Corporate travel, like at most international airlines, has plateaued at passenger volumes that are roughly 60%
