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Strong growth in average yields and successful cargo segment produce operating profit of €393 million (about US$400 million) in second quarter
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Load factors in premium classes above 2019 levels as recovery of business travel continues
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Lufthansa Cargo gained from high demand for freight capacity in the second quarter with its adjusted EBIT up 48% y-o-y to €482 million
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Group will be hiring around 5,000 new employees in the second half year of 2022
Germany’s flag carrier Lufthansa generated an operating profit of €393 million (about US$400 million) in the second quarter, as strong growth in average yields and successful cargo segment drove a rebound from a year ago, when its adjusted earnings before interest and tax (EBIT) was negative €827 million.
The adjusted EBIT margin rose accordingly to 4.6% (negative 25.8% in Q2 2021). Net income increased significantly to €259 million from €756 million a year ago.
The company turned over €8.5 billion in the second quarter, almost three times as much as €3.2 billion that it reported in the same period last year.
For the first half of 2022, the group recorded an adjusted EBIT of negative €1.98 million (prior year: negative €1.9 billion). The adjusted EBIT margin was negative 1.4% in the first half of the year, a jump from negative 32.5% a year ago.
Sales increased significantly compared with the first six months of 2021 to €3.8 billion (prior year: €5.8 billion).
“The Lufthansa Group is back in the black. This is a strong result after a half-year that was challenging for our guests but also for our employees. Worldwide, the airline industry reached its operational limits,” Deutsche Lufthansa AG chief executive Carsten Spohr said.
“Nevertheless, we are optimistic about the future. Together, we have steered our company through the pandemic and thus through the most severe financial crisis in our history. Now we must continue to stabilize our flight operations.”
Passenger traffic on the passenger airlines more than quadrupled year on year in the first half of 2022, the group said.Despite the higher price level, the Lufthansa Group’s flights had an average load factor of 80% in the second quarter, almost as high as pre-pandemic levels (2019: 83%).
In premium classes, the load factor of 80% in the second quarter even exceeded the 76% figure for 2019, driven by continued high premium demand among private travellers and rising booking numbers among business travellers.
The airlines in the Lufthansa Group carried 42 million travellers in January to June, compared with 10 million in the previous year. In the second quarter alone, 29 million passengers flew with the group’s airlines, a four-fold increase from 7 million a year ago.
The company continuously expanded the capacity offered in the first half at an average of 66% of the pre-crisis level in line with the steady rise in demand. In the second quarter alone, the offered capacity was around 74% of the pre-crisis level.
Results in the logistics business remain at record levels. The demand for freight capacities is still high, also due to ongoing disruptions in ocean freight.
Average yields in the airfreight industry remain well above pre-crisis levels. Lufthansa Cargo benefited from this also in the second quarter. Its adjusted EBIT rose 48% y-o-y to €482 million (previous year: €326 million). In the first half, the company achieved a record adjusted EBIT of €977 million (previous year: €641 million).
In the second quarter, Lufthansa Technik benefited from the further recovery in global air traffic and the resulting rise in demand for maintenance and repair services from airlines.
Lufthansa Technik generated an adjusted EBIT of €100 million in the second quarter (previous year: €90 million). For the first half, the company generated an adjusted EBIT of €220 million (previous year: €135 million).
Against the backdrop of the rapid increase in air traffic worldwide, Lufthansa Group is once again recruiting staff. In the second half, the company will hire around 5,000 new employees, in line with its ramp-up plan, while still ensuring sustainable productivity gains.
