Lufthansa Sees Demand For Flights, Cargo Improving

April 29, 2010

Bookmark and Share

Demand for flights and cargo services is growing as first signs of a global economic recovery have encouraged consumers and businesses to start spending more again, German flag carrier Lufthansa said.

"The outlook is better than it was a few weeks ago," chief executive Wolfgang Mayrhuber said at the airline's annual general meeting on Thursday.

Airlines suffered their worst year in decades in 2009 as demand dropped amid the global economic crisis, but industry group International Air Transport Association said on Wednesday demand for air travel and cargo had accelerated in March.

Mayrhuber said Lufthansa still aims to improve its 2010 group operating profit from last year's EUR€130 million euros (USD$173.1 million) and aims for a profit in the cargo division.

The company is due to report first-quarter results on May 5.

Lufthansa shares have underperformed peers British Airways and Air France-KLM so far this year as investors focus more on catalysts at the German carrier's rivals, such as an USD$8 billion merger deal BA signed with Iberia.

(Reuters)