Lufthansa guarantees fuel security for summer flights

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Copyright © BusinessAMBE 2023 Key takeaways Lufthansa guarantees sufficient fuel supplies for summer flights. Passenger demand remains crucial for achieving the annual financial targets. Rising ticket prices are intended to offset increasing fuel and labour costs. Deutsche Lufthansa has encouraged travellers to go ahead with their summer holiday plans and confirms that fuel supplies remain secure. According to Chief Commercial Officer Dieter Vranckx , the airline has not received any warnings from suppliers about possible shortages, allowing flights to continue without interruption. Fuel security amid regional tensions This reassurance follows growing concern over the availability of fuel, caused by the de facto closure of the Strait of Hormuz as a result of the conflict in Iran . The airline’s ability to meet its annual financial targets is heavily dependent on high passenger numbers during the peak season. Despite rising expenditure related to labour disputes and fuel, the group expects profits that will be significantly higher than in previous years. Higher ticket prices To offset these costs, Lufthansa plans to recoup around 60 per cent of the additional fuel costs in the second quarter, aiming for a full clawback of more than 100 per cent in the second half of the year. This strategy entails an increase in ticket prices for consumers; some market experts, such as Alex Irving of Bernstein, have nevertheless voiced scepticism about the feasibility of this approach. (fc) Follow Business AM on Google News as well Want access to all articles? Take advantage of our temporary promotion and subscribe here! © The Content Exchange, source News

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