Lufthansa is forecasting an increase in revenue this year, echoing estimates from other European airlines as travel demand continues to rise in the wake of the coronavirus pandemic.

Europe’s largest airline expects a “significant improvement” in the €1.5bn adjusted pre-tax profit and interest it announced for 2022. Lufthansa estimates that the demand for summer holidays in the Mediterranean countries and travel on its routes in the North Atlantic will be particularly strong.

According to the airline, the demand for summer vacations in the Mediterranean countries and for travel along the North Atlantic routes will be especially high.

“Lufthansa is back,” said CEO Carsten Spohr. “In just one year, we have achieved an unprecedented economic recovery.” The company’s share price is up 32% this year after rising 26% in 2022. Lufthansa’s announcements come after Air France-KLM and parent company British Airways IAG predicted a rapid recovery approaching pre-pandemic levels in 2023.

Despite the fact that the finances of European households are still under the pressure of high inflation, the demand for business travel, as well as for summer vacations, remains high. The global aviation industry is experiencing an active recovery after most countries lifted restrictive measures imposed against the spread of coronavirus. Airline maker Airbus said this month it was ramping up production of its largest aircraft to meet growing demand, while budget airlines like Ryanair Holdings said summer bookings boded a good season. Lufthansa aims to increase its capacity to 85-90% of pre-coronavirus levels, but has warned that persistent problems in the European aviation system will limit capacity to around 75% in the first quarter.

The airline estimates that this year it will make further progress towards its goal of a profit margin of at least 8% by 2024. Mr Spohr said the target was needed to reduce the debt that Lufthansa had accumulated during the coronavirus, when it had to be bailed out. German government.