The Lufthansa Group saw four times more first-quarter airline passengers than the same period in 2021, leading the company to increase capacity towards the end of the quarter, Lufthansa said in its first-quarter earnings report on Thursday.
Passenger numbers rose to more than 13 million in the quarter, up from about 3 million a year earlier. Capacity increased by 171 per cent year-on-year to 57 per cent recovery level, more than the 45.6 million available seat kilometers compared to the “pre-crisis level”. Lufthansa reports that the number of its first-quarter flights increased by 230 percent year-over-year to more than 135,500.
Lufthansa CEO Kirsten Spohr said in a statement that “restrictions on air traffic have largely been exceeded.” “Especially the last few weeks have clearly shown how great the desire of people for travel is. New bookings are increasing week by week – among business travelers, but especially for leisure and leisure travel.”
The company estimates the airline group’s business travel volume will return to about 70 percent of its pre-crisis level by the end of the year. Overall, the United States, South America, and Mediterranean destinations have particularly high demand.
First-quarter revenue more than doubled to € 5.4 billion ($ 5.7 billion) a year, of which € 3.8 billion ($ 4 billion) was passenger revenue, nearly 150 percent higher than the Q1 2021 level. Still, the company reported a net loss of € 584 million ($ 614 million), about 44 percent of the loss reported a year earlier.
The company’s operating costs rose quarterly due to higher fuel costs 25 an increase of 259 percent year-on-year to € 987 million ($ 1.04 billion) টিং operating staff costs and other factors. This increase could result in higher ticket prices.
“We must go through the rising cost of customers,” said Lufthansa CFO Remco Steinbergen.
Lufthansa expects second-quarter capacity to be about 75 percent of pre-epidemic levels. For the full year, the company expects an average passenger capacity of about 75 percent of the 2019 level. During the summer season, the company will offer about 95 percent of the pre-epidemic capacity on European short-distance routes and about 85 percent on transatlantic routes.
Lufthansa Q4 2021 earnings