The Strategist

Lufthansa adds 240% in quarterly profit

08/04/2023 - 03:24

In the second quarter, the German airline Lufthansa saw a 17% increase in sales to €9.4 billion and a 240% increase in net profit, to €881 million. The outstanding performance is linked to a rebound in post-pandemic flight demand.

Between August and December, ticket sales reached 90% of pre-pandemic 2019 levels. Additionally, Lufthansa dramatically increased its forecast for the whole of 2023: it now anticipates EBIT (profits before interest and taxes) of €2.6 billion, up from its earlier estimate of €1.5 billion. 

At that, once the reports were published, Lufthansa stock dropped 5.6%. Experts claim that this is because investors are concerned about rising costs that can have an impact on financial performance. 

"The market did not like the higher forecasts of non-fuel costs from Air France-KLM last week, so there is a risk of the same here," said analysts at Deutsche Bank. However, Lufthansa has previously stated that it only anticipates a modest increase in costs in the second half of the year.


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