Lufthansa Sees Record Summer Revenue Thanks to Capacity Limits

Things are looking good in Frankfurt. The Lufthansa Group, Europe's largest network carrier, sees all the elements falling into place for a significant improvement in operating profits this year.

Travel demand remains robust. Cost pressures are easing despite significant investments in operational aspects of the business to avoid a repeat of last summer's rampant flight delays and cancellations. And the group sees a permanent shift to more premium leisure travel that supports its big investment in new first, business, and premium economy cabins dubbed Allegris.

“The Lufthansa Group is on track," CEO Carsten Spohr said during a first-quarter earnings call Wednesday. The group posted an adjusted €273 million ($302 million) operating loss, and €467 million net loss, in the first quarter; not an unusual result for the weakest three months of its year. Its operating margin was negative 3.9 percent.

Lufthansa, however, sees money to be minted this sum