German airline Lufthansa forecasts profitability growth in the coming months due to rising demand, despite staff shortages complicating and limiting airport operations.

According to Lufthansa's announcement, a “significant increase” in revenue is expected in the third quarter compared to the second quarter.

Higher ticket prices and strong profit growth in cargo transport more than offset the rise in fuel costs in the second quarter.

The share price rose 5.3 percent at the start of trading on Thursday.

Lufthansa also announced that it expects operating profit (EBIT) at the end of the year to exceed 500 million euros, while analysts estimated 585 million euros. The airline had previously stated only that it expected a better result than last year.

During the pandemic, Lufthansa significantly reduced the number of employees and is now announcing the hiring of 10 thousand people over the next 18 months.

During the summer, the company canceled about seven thousand flights due to staff shortages and a strike organized by the ground staff union.

Negotiations on wage increases with pilots are continuing.

In the second quarter, Lufthansa's EBIT amounted to 393 million euros after it had been announced that it would amount to between 350 and 400 million euros.

Source: hr.bloombergadria.com