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Lufthansa Rides High Travel Demand to Beat Q3 Estimates
Against all odds, Lufthansa, the German airline juggernaut, has exceeded market expectations for the third quarter.
The company reported a solid outlook for the fourth quarter, with costs on a downward trend and bookings showing remarkable strength leading up to the festive season.
This positive news has propelled Lufthansa’s shares up by over 6.5% on Thursday, signaling renewed confidence in the airline industry.
A Favorable Quarter
Despite concerns over a potential profit warning, Lufthansa has delivered quarterly profits that slightly surpassed analysts’ consensus. This commendable performance is attributed to a surge in travel demand during the summer season, indicating a resilient consumer base even in the face of a cost of living crisis.
Analyst Insights
Neil Glynn, an analyst at AIR Control Tower, noted, “There seemed to be some expectation of a profit warning today. It didn’t come, so there’s been a bit of a relief rally.” This sentiment reflects the positive sentiment among industry experts, as Lufthansa’s performance exceeded initial predictions.
