(New: Statements from telephone press conference on engine problems, China flights, business travel, Eurowings, Discover; divisional sales, ITA takeover, updated share price reaction)

FRANKFURT (dpa-AFX) - Three years after its government bailout, Lufthansa is flying back to previous profit highs. The record second-quarter results announced Thursday are a harbinger of at least the third-highest annual profit in the company's history. In part because of continued high ticket prices, Chief Executive Carsten Spohr expects a full-year operating profit (adjusted Ebit) of at least 2.6 billion euros.

The Group had only earned more in 2017 (3.0 billion) and 2018 (2.8 billion) immediately after the bankruptcy of its competitor Air Berlin, and was then plunged into the Corona crisis. Here it was rescued from bankruptcy in 2020 by the states of Germany, Austria, Switzerland and Belgium with a total framework of 9 billion euros. Lufthansa had repaid the aid in full by the end of 2022.

Spohr does not see any scope for price cuts despite the current record figures. The industry's costs for personnel, fees and services, for example, are and will remain high. Nor should it be forgotten that the billions in losses from the Corona pandemic have to be recouped. Per passenger, the company is currently left with a profit of only 15 euros, Spohr said. "I would say the cab driver who took me to the airport in Munich this morning earned more on the trip. He's entitled to it."

Demand continues to pick up after the summer, the Lufthansa CEO said. "In our advance bookings, we see no demolition." In addition, business with China is now coming back, as well as with business travelers who have been reluctant to travel. There is also tremendous momentum in the Indian market, he said, and Lufthansa is planning additional connections there. Only business travel within Germany will remain permanently smaller than before the Corona crisis.

The Group continues to struggle with its tight seat capacity compared to the competition, which is currently around 85 percent of pre-crisis levels. Bottlenecks remain at the hubs in Frankfurt and Munich, Spohr said. In addition, delayed deliveries of aircraft and spare parts are hampering operations. For example, delivery of the first Boeing 787 long-haul jet with the new, more comfortable Allegris cabin has now been delayed until next year after all. Europe's largest airline group is also affected by the global recall of Pratt & Whitney engines. However, Spohr assured the airline that it had sufficient replacement aircraft.

For the coming year, the Lufthansa CEO announced a stricter focus on costs, after the priority in the current year had been to stabilize operations. Crews would have to fly more again, and aircraft would have to be deployed more frequently and efficiently. Since this Thursday, the regular pilots of Lufthansa and Lufthansa Cargo have also been voting on a negotiated wage settlement that would, among other things, secure them salary increases of between 25 and 50 percent over a period of about five years.

In the strongest early summer quarter in its history, Lufthansa increased its revenue by 17 percent year-on-year to almost 9.4 billion euros thanks to more passengers and higher ticket prices. Ticket prices - measured in terms of average yields - rose by 13 percent, more than offsetting the roughly 7 percent increase in costs. All airlines, including Eurowings and Eurowings Discover, delivered black figures. Adjusted operating profit almost tripled to almost 1.1 billion euros. The bottom line was a profit of 881 million euros, three and a half times as much as a year earlier.

Strategically, the Crane Group sees itself on course to become a focused airline group. The agreed acquisition of a 41 percent minority stake in the Italian state-owned company ITA is to be completed this year, as is the sale of the catering subsidiary LSG. The sale of the service provider AirPlus is also to be finalized next year. The Group is looking for a minority shareholder for Lufthansa Technik.

On the stock market, however, the news was met with a slide in the share price. The Lufthansa share lost more than seven percent at times in the morning, making it the biggest loser in the MDax. In the afternoon, it was still the bottom performer in the mid-cap index, losing four and a half percent./ceb/stw/DP/stw