From Bloomberg 8 March 2023
This is what we have discovered in the last six months.
Chris Bryant is a Bloomberg Opinion columnist covering industrial companies in Europe. Previously, he was a reporter for the Financial Times. @chrismbryant
Deutsche Lufthansa AG boss Carsten Spohr said the quiet part out loud last week, telling analysts the German flag carrier wouldn’t rush to add more aircraft capacity despite surging passenger demand, because high yields — industry jargon for average fares — “are just too much fun.”
Lufthansa isn’t the only airline executive sounding exuberant about soaring ticket prices helping repair their Covid-hit balance sheets. Leisure travel demand is off the charts, and US and European airlines are either unwilling, or unable, to increase capacity sufficiently due to staffing and equipment shortages. These highly advantageous conditions (for them) look set to continue for years.