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Lufthansa enjoys rosy outlook

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Group sees strong demand – and the demise of rivals
Lufthansa is upbeat after benefiting from strong summer demand and the demise of several rivals. While Air Berlin and Monarch have collapsed, Europe’s biggest carriers are seeing fuller planes.
Lufthansa Group posted a 32% rise in underlying third-quarter earnings before interest and tax, to €1.52 billion, on total revenue of €9.81 billion, although net profit was down 17% to €1.18 billion.
It now expects unit revenue – which measures how much income is generated per unit of capacity – to increase further in the fourth quarter following a 4.5% rise in Q3. This is a rosier forecast than its earlier estimate of a fall in second-half unit revenues.
Lufthansa says it is deploying bigger long-haul planes on some short-haul routes due to demand caused by Air Berlin’s collapse. Its former rival will make its final flight on Friday.
“Altogether, we are expecting a very strong year. Our view on the development in the fourth quarter has improved,” said Ulrik Svensson, chief financial officer, adding that the profit target for 2017 remains higher than the €1.75 billion raked in during 2016.
Reuters

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