Lufthansa surges as travel rebounds with €1,000 London fares

The German airline said it will only offer seats in its most expensive booking class for July

Lufthansa has scrapped almost 6,000 summer flights. Picture: Alex Kraus/Bloomberg

German airline Lufthansa returned to profitability in the second quarter, benefiting from surging travel demand that has overwhelmed airlines and airports across Europe and has forced many to raise fares and limit seat availability.

The stock gained as much as 9% after the company said revenue more than doubled to €8.5bn, while adjusted earnings before interest are expected to come in between €350m and 400m, far exceeding the €218m estimate by analysts.

“The result of the passenger airlines improved mainly due to a strong rise in yields and a significant increase in loads,” Lufthansa said in a preliminary earnings release.

Seat occupancy was particularly high in premium classes, and the cargo operation was another bright spot, it said.

Bouncing back

The aviation industry is bouncing back from the depths of the coronavirus pandemic that forced the likes of Lufthansa into a government bailout and caused huge losses across airlines.

But as passengers rush to board planes again for business trips and their summer vacation, they’re confronted with chaotic scenes at airports that often lack sufficient staffing to manage the surge.

In response, airlines have cancelled flights and thinned out capacity to help manage the flow, often at short notice.

Lufthansa said last week said it will only offer seats in its most expensive booking class for the month of July. That move raised the price of even the cheapest return flights between London and Frankfurt to €1,000.

Lufthansa has scrapped almost 6,000 summer flights.

• Bloomberg