Lufthansa doubles 2022 profit forecast on surge in bookings

Deutsche Lufthansa AG said full-year earnings will be twice as high as expected after higher ticket prices and a rebound in demand sparked an accelerated recovery from the coronavirus crisis.

Germany’s flagship carrier now expects 2022 adjusted earnings before interest and taxes of more than €1 billion ($981 million), according to a statement Monday. That compares with previous guidance of above €500 million.

Lufthansa shares closed 1.6% higher in Frankfurt after earlier jumping 4.6% following the announcement.

Europe’s biggest airline follows British Airways parent IAG SA in reporting a surge in earnings after a bumper summer. IAG rose 8% Thursday and Lufthansa gained almost 5% after the London-based firm said third-quarter profit was about 50% higher than predicted by analysts, with no sign of waning demand.

Lufthansa spent much of the peak holiday season battling disruption at its hubs, yet cancellations due to strikes and staff shortages pushed up ticket prices, lifting margins. Third-quarter revenue doubled to €10.1 billion, while adjusted Ebit jumped to €1.1 billion from €251 million the previous year.

The group, which also includes the Swiss, Austrian and Belgian flag carriers, said it’s seeing strong demand for travel over coming months, complementing an anticipated record result from the cargo division.

Lufthansa was rescued by the German government after the Covid-19 pandemic grounded flights in 2020, but repaid its 9 billion-euro bailout ahead of schedule. That enabled the state to offload its stake at a profit last month.