Lufthansa reported its highest-revenue quarter on record, with robust demand for premium travel helping the airline group more than offset an approximately €500 million increase in fuel costs. The results, released Tuesday, were in line with analysts’ expectations, which had put quarterly revenue at an average of €12.19 billion.
For the first nine months of the year, group revenue reached €32.1 billion, up from €29.6 billion in the same period last year. Adjusted earnings fell to €1.2 billion from €1.5 billion.
Despite the strong quarter, Lufthansa lowered its full-year adjusted earnings outlook to between €1.7 billion and €2 billion. In August, it had revised its forecast from more than €2 billion to a range of €1.7 billion to €2.2 billion.
Chief executive Carsten Spohr said rising revenue, steady demand and strict cost controls had more than compensated for the higher fuel bill. Premium Economy, Business and First Class bookings were particularly strong, alongside demand on routes to Asia and North America. These trends helped Lufthansa’s network airlines raise average revenue per passenger by 6.8%.
High fuel prices remain a major pressure on the group. Lufthansa had previously estimated that the conflict involving Iran could add around €1.5 billion to its kerosene costs, assuming it would end quickly. Spohr warned in late September that the additional costs could exceed that amount. The airline uses fuel-price hedging to limit its exposure, and said it was currently hedged for more than 60% of its fuel needs for next year.
The higher fuel bill has also weighed on the group’s turnaround efforts. Lufthansa Airlines, the core brand, recorded an adjusted operating loss of €180 million in the first nine months, compared with a €131 million profit a year earlier. The results leave the airline’s planned recovery important to the group’s goal of reaching an adjusted operating margin of 8% to 10% by 2030.
Performance varied across the group. Swiss posted adjusted operating profit of €508 million, up 6%. Brussels Airlines reported €15 million, down 34%, while Austrian Airlines recorded €48 million, a decline of 37%. Eurowings moved to an operating loss of €38 million from a €61 million profit in the prior-year period.
Lufthansa Technik and Lufthansa Cargo helped support the group’s quarterly results. The maintenance subsidiary increased its result by 17% to €515 million, while the cargo business raised its result to €361 million from €184 million a year earlier.
Sources: Handelsblatt.