What's going on?
It looks like you’ve caught a severe case of the travel bug: Lufthansa announced on Thursday that it more than doubled its revenue last quarter.
What does this mean?
Europeans emerged from another wave of Covid with the majesty of Free Willy last quarter, and Lufthansa was only too happy to help them return to the big wide world: the airline almost tripled the number of seats on offer last quarter from the same time in 2021. Throw in a cargo business that outperformed thanks to ongoing supply holdups, and the company’s revenue more than doubled from the same time the year before. And while the airline posted a higher-than-expected loss on the back of painful energy costs, it also said it was confident that demand would be strong enough to pass some of them onto customers going forward.
Why should I care?
For you personally: Hot vax summer, take two.
Lufthansa’s not wrong: there are more and more signs that the rebound in vacation travel hasn’t peaked yet, with payments giant Visa talking about how many summer travel booking transactions it’s seen this year. That could present an opportunity for you, since travel-related stocks are yet to see a post-pandemic resurgence like, say, tech companies and banks experienced last year. You might want to be quick if you’re keen to buy in, though: an index tracking some of the world’s biggest airlines has already outperformed the US stock market by 10% this year.
Zooming out: Airbnb has accepted your booking.
It isn’t just the airlines benefiting from globetrotters trotting the globe: Airbnb said this week that its revenue surged by a better-than-expected 70% last quarter, and it’s expecting that momentum to continue this quarter. It’s already off to a good start: it had 30% more nights booked for the summer travel season by the end of April than it did at the same time in 2019.