Brussels Airlines posted sharply higher sales in the first quarter at 280 million euros than a year earlier. However, the airline still lost 44 million euros but maintains that it is “on track for strong black figures for all of 2023”.

Parent company Lufthansa also posted a loss in the first quarter, a net loss of 467 million euros. Still, the European airline giant is confident of recovery and expects a boom in travel demand this summer.

15% higher ticket prices

Brussels Airlines thus posted sales of 280 million euros from January to March, traditionally the weakest period of the year. Nevertheless, that was 78% more than the 157 million euros at the beginning of 2022 when the corona crisis was still being felt hard.

Revenue went up thanks to a higher number of flights and more revenue per flight due to 15% higher ticket prices. For example, the number of flights rose 55% in the first quarter to 12 647. Passenger numbers rose 82% to 1,59 million.

As a result, Brussels Airlines was able to “significantly reduce its operating loss”. As a result, operating profit (edit, earnings before interest and taxes) came in at -44 million euros, compared with -62 million euros a year earlier.

Operating costs up 54%

Brussels Airlines attributes the loss to sharply rising operating costs. These increased by 54% to 350 million euros, compared to 227 million euros a year earlier. This is mainly due to higher expenses for more expensive fuel and higher costs for fees and costs in general due to inflation.

For Finance Director Nina Oewerdieck, the results are in line with expectations. However, the number of passengers and flights is still lower than before the pandemic because the typical one-day business trips were reduced by 20%.

“The improvement of our revenues by almost 79% and of the adjusted ebit by 29% gives us confidence and confirms that we are on our way to strong black figures for all of 2023,” she said. It would be the first time in five years that Brussels Airlines has returned to profitability, and for that, it is also counting on a solid summer with four new aircraft and nine new destinations. 

Since April 15, new CEO Dorothea von Boxberg has also taken the helm at the airline.

A lot of confidence at Lufthansa

German parent group Lufthansa, whose portfolio includes Swiss, Austrian Airlines, and Lufthansa Cargo, also saw revenue growth. Thanks to more passengers (+70% to 22 million) and higher ticket prices, it rose 40% to 7 billion euros. The adjusted EBIT result went from -577 million euros to 273 million euros. The net loss went from -584 million euros to -467 million euros.

Lufthansa is still angling for a partial take-over of the Italian ITA Airways and looks ahead confidently. “We expect a travel peak in the summer and, for the full year, a new record in our traffic revenues,” said CEO Carsten Spohr. As a result, Lufthansa maintains its outlook for a further “significant improvement” in operating profit for the entire year.