Lufthansa said today it expects business to remain strong into 2011 after demand for international premium class travel and cargo services improved in the third quarter.
"Average yields went up significantly in all long-haul regions and load factors improved at the same time," chief financial officer Stephan Gemkow said.
During the crisis, many companies restricted business travel or booked cheap seats at the back of the plane instead of plush, pricey ones in first and business class -- a trend Lufthansa says is easing for intercontinental travel.
Lufthansa said it was seeing the strongest growth on routes to North and South America, as well as to Asia, where it recently started operating A380 superjumbos to Tokyo and Beijing. In Europe prices are still under pressure, it said.
Industry body the International Air Transport Association (Iata) has said it sees European carriers remaining in the red this year as weak economic growth and depressed consumer confidence keep travelers from splurging.
Euro zone consumer confidence has improved moderately in the aftermath of the global economic crisis, but stagnated at a weak level this month, pointing to slower economic growth in the second half of 2010.
But major European airlines with a strong international route network, such as Lufthansa, Air France-KLM and British Airways have so far fared well in the recovery.
Lufthansa yesterday raised its 2010 outlook as it posted consensus-beating earnings for the first nine months of the year. It said it expects to resume paying a dividend for this year but did not give further details.
The airline said nine month net profit rose to €524 million from €31 million.
Lufthansa shares gained 0.9 per cent to €15.575, versus an unchanged sector.
Air France-KLM had raised its outlook on Tuesday, citing a recent improvement in revenue and robust forward bookings. The carrier is due to report fiscal first-half results on Nov. 17.
British Airways, which is merging with Spanish carrier Iberia, reports earnings on Friday, October 29th.
Globally, the airline sector is expected to post a 2010 profit of $8.9 billion after losing $10 billion amid the global economic crisis last year, according to Iata.