Lufthansa has predicted that demand from wealthy passengers will bring “substantially higher” profits despite widespread travel chaos and disputes with unions. “We see a nice ramp-up coming for the third and the fourth quarter,” said CE Carsten Spohr, adding that the airline could carry 80% of its pre-pandemic passenger numbers next year, even as economic data increasingly point to a global recession. “People who are travelling business class or even first class on an airline like Lufthansa . . . they tend to be less sensitive to economic up and downturns,” said Spohr. However, he confirmed that business travel bookings were still at only 50% of their pre-Covid levels. The airline’s wealthier customers “are willing to spend money on vacations, on hotels, on rental cars, on expensive restaurants and [are] also willing to spend more money for personal space and travelling”, he added, citing data from Lufthansa subsidiary Swiss. Before the pandemic, corporate bookings accounted for 45% of the group’s revenue. But Lufthansa has reduced capacity for business travel since companies moved to holding more meetings online. Net profits for the three months to the end of June were E259m, compared with a E756m loss in the same period last year, putting the airline on track to post an annual profit for the first time since the pandemic began. Lufthansa’s cargo division benefited from high demand for freight transport, posting record earnings before tax and interest of E482m in the quarter.<br/>
star
Ground staff of Germany's Lufthansa and management have reached a pay deal after a third round of negotiations, the Verdi labour union and the carrier said on Thursday. The pay dispute resulted in a strike last week, prompting the cancellation of more than 1,000 flights and adding to travel disruptions during the busy summer travel season. Lufthansa still faces uncertainty over possible walkouts by its workers. The carrier is due to hold talks next with pilots, who have already voted in favour of strikes. The pay deal announced Wednesday affects 20,000 employees, granting them raises in three steps. A 200 euro a monthly increase this year will be followed by two 2.5% increases next year. Verdi originally demanded a 9.5% pay hike. <br/>
The airlines of Lufthansa Group will try offering a new “green fare”, which the group claims will include “full compensation” for carbon emissions. The trial includes flights operated by Lufthansa, Swiss, Austrian and Brussels Airlines on flights departing Denmark, Sweden and Norway. Lufthansa’s “green fare” will include 100% compensation for the passenger’s contribution to carbon emissions, according to the airline. 80% of the emissions will be offset through funding climate protection projects, while the remaining 20% is accounted for by the use of SAF. Earlier this week, Lufthansa Group signed an MoU with Shell to receive up to 594m gallons of SAF between 2024 and 2030. The new fare choice is displayed during the booking process alongside the group’s existing fare classes of light, classic and flex. It is available on both economy and business class tickets within Europe, and also available from travel agencies. Lufthansa has made no comment on the pricing structure. However, on a one-way ticket from Oslo to Munich in September, the green fare was comparable in price to the existing flex ticket. The choice of Scandinavian markets is an interesting place to start. Disposable income is relatively high across the region and so if the fare trial doesn't work in Scandinavia, chances are it won't take off elsewhere.<br/>
Singapore Airlines has cancelled two scheduled flights for Friday, amid "evolving airspace restrictions" as China conducts live-fire military exercises in six zones around Taiwan. The flights affected are SQ878, which flies from Singapore to Taipei, and SQ879, which flies from Taipei to Singapore. "The safety of our customers and staff is our top priority. SIA will continue to monitor the situation closely and make any adjustments, as necessary," said an SIA spokesman. China is conducting live-fire military exercises from Thursday to Sunday, following United States House Speaker Nancy Pelosi's visit to the self-ruled island on Wednesday. The Civil Aviation Authority of Singapore (CAAS) said China sent out a notice to airmen on Tuesday, prohibiting aircraft from flying into identified areas affected by the live-firing exercises.<br/>
Air New Zealand aims to reduce absolute carbon emissions by 16.3% by 2030, from a 2019 baseline. That would equate to a required reduction in carbon intensity of 28.9% during the period, the airline said in a statement on Thursday. The airline’s interim target had been validated by the Science Based Targets initiative (SBTi), which is a partnership between carbon disclosure charity CDP, the United Nations Global Compact, World Resources Institute, and the World Wide Fund for Nature. Air NZ chief operational integrity and safety Officer David Morgan said the company’s greenhouse gas emissions had been reviewed in detail by the SBTi to ensure it had an accurate emissions baseline and science-based target set.<br/>