Lufthansa returns to profitability
The reason is the relaxation of travel restrictions

German Lufthansa expects the high demand for its booming cargo business and the recovery in passenger flights to continue next year, it said on Wednesday after reporting its first adjusted operating profit since the coronavirus crisis.
The group posted adjusted earnings before interest and taxes (EBIT) of 17 million euros ($ 20 million) for the third quarter, compared to a loss of 1.262 billion euros a year ago, aided by a strong cargo business and rising demand during the summer season with the relaxation of travel restrictions.
"We have mastered another milestone on our way out of the crisis: We are back in the black," said CEO Carsten Spohr.
In a survey published by the company, analysts had expected an adjusted EBIT loss of 33 million euros.
Lufthansa's air freight business posted an adjusted record result of 301 million euros as demand and air freight rates rose due to bottlenecks in ocean freight and disruptions in global supply chains.
"The favorable relationship between supply and demand will last at least until 2022, but it is very likely that it will continue beyond that," said Spohr.
The company's sales almost doubled to 5.2 billion euros in the third quarter, while the analysts had expected 5.5 billion euros.
Lufthansa, which also includes Eurowings, Swiss, Brussels and Austrian Airlines, expects a positive development in demand, which will lead to positive earnings before interest, taxes, depreciation and amortization (EBITDA) in the fourth quarter.
The capacity, measured in available seat kilometers, was 50% of the pre-crisis level in the third quarter. It expects capacity to increase to more than 70% of 2019 levels in 2022.
"The positive development will continue in the second half of the year up to 80%", so Spohr.
New bookings are currently at 80% of 2019 levels, the airline said, reflecting the recovery in business bookings and increasing demand for long-haul flights, particularly to the United States, Lufthansa's most important and profitable market.
With the US opening up to travelers from Europe next week, Spohr said that transatlantic bookings are already at 80% of pre-crisis levels. He added that he expects mainland China to open in mid-2022 rather than early next year.
Lufthansa shares rose by 6.1% by 1101 GMT, making them the second-best value in the German mid-cap index MDAX.
The group, which received a € 9 billion rescue package from public funds last year to keep afloat, said it expects investments of around € 2 billion over the next year and is aiming for € 2.5 billion in the long term Year on.
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