Lufthansa reported stronger-than-expected results for the third quarter, with adjusted operating profit increasing 6% year over year to €1.4 billion between July and September. Analysts had forecast an average of €1.37 billion. Revenue reached €12.2 billion, 9% higher than in the previous quarter and slightly above expectations.
The results came despite a steep rise in fuel expenses. Lufthansa said costs were more than €500 million higher for the quarter, citing the war in Iran. For the full year, the company now expects fuel costs to increase by around €2 billion, compared with its previous estimate of about €1.5 billion.
The group said demand remained strong across its segments, supporting higher ticket prices. Its airlines, including Swiss, Austrian, Brussels Airlines and ITA Airways, sold many premium tickets and long-haul flights. All airlines except the core Lufthansa Airlines brand improved their results. Lufthansa Cargo tripled its operating profit, while Lufthansa Technik also earned significantly more from aircraft maintenance. Savings, alongside strong operating revenue, helped offset the higher costs.
Chief executive Carsten Spohr said he remained dissatisfied with developments in the German market. In an interview with Der Spiegel, he criticized the relatively low number of working hours in Germany and what he described as limited flexibility due to employee representation and collective bargaining agreements.
Sources: Der Spiegel.