The Lufthansa Group has demonstrated its 'regained profitability' by posting an operating profit of over €1 billion for the third quarter of 2022. This is more than four times higher than the figure it achieved in this regard for the same period in 2021. The group also had many other reasons to be cheerful in its latest results.
A sizable operating profit
The main headline from the Lufthansa Group's financial results for the third quarter (July - September) of 2022 is the fact that its operating profit for this period came to an impressive total of €1.132 billion ($1.139 billion). With this figure having been €251 million in Q3 of 2021, this represents a year-on-year increase of 351%.
A key aspect in this regard is the fact that Lufthansa's total revenue has almost doubled year-on-year, jumping from €5.207 billion in last year's third quarter to €10.068 billion this time around. This represents a 93% increase, despite the impact of strikes totaling around €70 million. Lufthansa CEO Carsten Spohr stated that:
"The Lufthansa Group achieved a very strong result in the third quarter with an operating profit of over one billion euros, thus demonstrating its regained profitability. All business segments, passenger airlines as well as logistics and MRO, contributed to this success. This once again underlines the strength of our portfolio."
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Leaving the pandemic behind
There is a lot in the Lufthansa Group's latest set of financial results to suggest that it has completely ridden the storm of the coronavirus pandemic. Indeed, 33 million passengers flew with the group's airlines in the third quarter this year, compared to 20 million in the same period for 2021. This resulted in record yields that were an impressive 23% higher than 2019's pre-pandemic levels.
In terms of load factor, this is another metric where the Lufthansa Group is performing equal to or better than before the onset of coronavirus. Indeed, with an average of 86%, this puts it on par with pre-COVID record years. Meanwhile, load factors in business and first class have actually exceeded those achieved in 2019, with premium leisure demand also being high. Spohr thus adds that:
"The Lufthansa Group has economically left the pandemic behind, and is looking optimistically into the future. After all, the desire to travel, and, thus, the demand for air travel, continues unabated."
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Non-passenger divisions are also performing well
While passenger traffic is the bulk of Lufthansa's day-to-day work, it is important to touch on other aspects of its operations, especially given that these are also bouncing back strongly. Indeed, Lufthansa Cargo made a €1.3 billion operating profit between January and September, putting it well on track to beat 2021's full-year record total of €1.5 billion. Its Asian routes are performing particularly well.
On a similarly positive note, Lufthansa Technik, the carrier's maintenance division, had its best-ever quarter, with an operating profit of €177 million. It has benefited from the increased demand for maintenance due to more planes being back in the air. This part of the business is now operating at 90% of its pre-pandemic levels, and, like the cargo division, is expected to generate a record annual profit this year.
What do you make of Lufthansa's Q3 results? Did you fly with the German flag carrier, or one of its partners, in the third quarter? Let us know your thoughts and experiences in the comments!
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Lufthansa
- IATA/ICAO Code:
- LH/DLH
- Airline Type:
- Full Service Carrier
- Hub(s):
- Frankfurt Airport, Munich Airport
- Year Founded:
- 1953
- Alliance:
- Star Alliance
- Airline Group:
- Lufthansa Group
- CEO:
- Carsten Spohr
- Country:
- Germany
