Reduction of losses, containment of costs, increase in turnover. In a still difficult year for the air transport sector, the German company Lufthansa closes on 2021 budget still in the red for 2.2 billion euros, but lower than € 6.7 billion in 2020, after having posted a third quarter in profit thanks to the positive results of the summer season. Turnover rose 24% to € 16.8 billion from € 13.6 billion the previous year.
The outlook is positive despite a difficult first quarter, but the uncertainties surrounding the conflict in Ukraine and the pandemic do not allow us to set guidance for the current year, in addition to the increase in the price of kerosene, another element of strong tension.
According to the company, bookings are on the rise for the Easter period and for the summer and February has reached its peak since the start of the pandemic. For the current year, the company expects to offer 70% of the seats compared to the levels reached before the pandemic, with peaks of 85% in the summer and 95% for the short and medium range. “We are sure that air traffic will undergo a strong recovery this year,” CEO Carsten Spohr said in a statement, “in light of the booking results.
On the stock market, the company’s stock has fallen by more than 4% and 12% since the start of the Ukrainian crisis. Lufthansa is the first airline to publish financial results since the start of the conflict. The decision of Europe, Canada and the United States to close the airspace to Russia will have an impact on the air transport sector and the company has expressed its readiness to respond to new outbreaks that will arise both on the passenger transport and on that of the cargo.