By Scott Kanowsky
Investing.com -- Deutsche Lufthansa AG (ETR:LHAG) has raised its profit guidance for its 2022 financial year for the second time in two months, citing strong demand for air travel that helped lift earnings performance in October and November above expectations.
The group now anticipates that full-year adjusted earnings before interest and taxes will come in at around €1.5 billion (€1 = $1.0538), up from its prior outlook of more than €1B. Analysts had penciled in core profit of €1.13B for the period.
Shares in Lufthansa rose by more than 4% in early European trading on Tuesday, helping boost rivals Air France KLM SA (EPA:AIRF) and British Airways-owner International Consolidated Airlines Group (LON:ICAG) (BME:ICAG) as well.
In a statement, the German carrier said average passenger yields - a measure of the amount of revenue received per mile flown - have remained well above pre-pandemic levels. Bookings in the coming months indicate a "continuation of the positive trend" in the passenger unit, the company added.
Meanwhile, its cargo business and maintenance service are also expected to achieve record annual results.
Lufthansa had previously lifted its outlook in October, saying passenger traffic will remain solid over the rest of 2022 despite a typical slowdown in bookings during the winter months. At the time, Chief Executive Officer Carsten Spohr declared that the firm has "economically left the pandemic behind and is looking optimistically into the future."
The airline will present its full 2022 results in March.