Lufthansa narrows losses as Ukraine weighs on outlook

German carrier Lufthansa said Thursday that it cut its losses by two-thirds in 2021, but warned of uncertainty for the industry from the coronavirus pandemic and the Russian invasion of Ukraine.

Europe’s largest airline group -- which includes Eurowings, Austrian, Swiss and Brussels Airlines -- reported net loss of 2.2 billion euros ($2.4 billion) in 2021, compared with a bottom-line loss of 6.7 billion euros a year earlier.

Lufthansa said it expected business to improve this year, but “major uncertainties” surrounding Ukraine and the future course of the pandemic made it difficult to provide a more detailed forecast. 

Russia’s invasion of its neighbour has disrupted Lufthansa’s services, with the airline suspending flights to both Russia or Ukraine. 

The escalation in the conflict involving the major energy supplier Russia has also given a push to already high prices for fuel. The rising cost of oil would create “additional burdens” for the group, Lufthansa said, while saying it expected to weather increases better than competitors.