Lufthansa: Lufthansa says it's back as earnings rebound, flags further gains in 2023

GDANSK, Poland - Germany's Lufthansa on Friday returned to what it called a "clearly positive result" for 2022 as air travel bounced back and said it expected a significant improvement in earnings this year. Passenger numbers doubled and net revenue almost doubled last year from 2021, although the figures remained short of pre-pandemic levels. "Lufthansa is back," chief executive officer Carsten Spohr said in a statement. "In just one year, we have achieved an unprecedented financial turnaround... Demand for air travel remains high in 2023," he added. Lufthansa shares were up more than 6 per cent on Friday soon after the results were announced, having climbed more than 30 per cent in value since December last year. The company reported a full-year operating profit of €1.51 billion (S$2.16 billion), compared with a loss of €1.6 billion in the previous year. Fourth-quarter profit swung to a profit of €575 million from a loss of €42 million, in line with expectations. Its balance sheet also improved, with net debt falling to €6.9 billion from €9 billion. Operating profit was still 34 per cent lower than that seen in pre-pandemic 2019, with the airline noting that passenger numbers were 72 per cent of the level achieved then. Lufthansa is also grappling with high cost inflation as well as a surge in fuel prices. Yields are, however, expected to stay about 20 per cent above 2019 levels as higher costs are passed on to passengers, a Lufthansa representative said on a call with media. The company said it expected "further significant improvement" in operating profit this year. After having had to cancel many flights last year, the company is preparing for potential travel chaos this summer season. It has called off some of its 2023 scheduled flights, given that airport and technical staff remain limited in some areas. REUTERS Article source: https://www.straitstimes.com/business/lufthansa-says-its-back-as-earnings-rebound-flags-further-gains-in-2023