Germany’s national carrier Lufthansa (LHAB) (LHA) recorded an operating profit in Q2 for the first time since the COVID-19 pandemic began despite geopolitical uncertainty in Europe and soaring fuel prices.
During Q2 2022, Lufthansa (LHAB) (LHA) posted an operating profit of €393 million (US$ 400 million), an increase compared to an operating loss of €827 million (US$ 843 million) in Q2 a year ago.
The positive results were attributed to strong travel demand and effective cost containment across the group.
“Returning to profitability in a quarter that was marked also by high geopolitical uncertainty and rising oil prices is a major achievement,” said Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG.
Looking ahead, Lufthansa (LHAB) (LHA) expects to generate full year adjusted operating profit (EBIT) of more than €500 million (US$ 510 million).
Despite the need for some flight cancellations due to summer travel disruptions and pilot strikes across Europe, “the airline will continue to expand capacity in line with demand and plans to offer around 80% of its pre-pandemic capacity in Q3 2022”.
The airline also said it will be hiring more than 5,000 employees in the second half of 2022. A similar number of new hires is planned in 2023.
While Lufthansa (LHAB) (LHA) is on its way to recovery, the airline faces difficulties amid the looming pilot strike. On July 31, 2022, pilots at the German flag carrier have voted in favor of industrial action, paving the way for a strike.
Lufthansa (LHAB) (LHA) pilots’ demands are primarily about compensation for wage loss, the alignment of remuneration system, and making lower wage levels more competitive, the pilot association of Germany said.