Lufthansa and Air France-KLM have reported strong operating profits, outperforming analysts’ expectations, following a pattern where European airlines are experiencing a rise in second-quarter profits, defying economic uncertainty and US tariffs.
Lufthansa reported a 27pc year-on-year increase in second-quarter operating profit to €871m, beating an average forecast of €805m by the markets. The group’s latest acquisition, Italy’s ITA Airways contributed a surprisingly large profit to the accounts.
Air France-KLM’s second-quarter operating profit rose to €736m from €513m a year earlier, in line with analyst expectations. Aer Lingus parent IAG will report is results on Friday.
Despite weak travel demand predictions, European airlines are bucking the trend set by US counterparts. Investment strategies, such as Lufthansa’s stake in ITA Airways, have contributed positively to financial results.
Air France-KLM and Lufthansa’s share prices have increased due to their ability to navigate geopolitical challenges.
Carsten Spohr shared “Although the second quarter was again marked by geopolitical crises and economic uncertainties, we are today confirming our positive outlook for the full year.”
Ben Smith shared “The group was keen to bolster its operations in Copenhagen now that it has taken a majority stake in Scandinavian carrier SAS.”
Lufthansa Q2 passenger numbers
| April | 11.7m | +5.6pc | |
| May | 12.47m | +2.1pc | |
| June | 12.929m | +2.3pc | |
| Q2 | 37.1m | +3.2pc |
