"Average yields went up significantly in all long-haul regions and load factors improved at the same time," Chief Financial Officer Stephan Gemkow said.
During the global financial crisis many companies restricted business travel or booked cheap seats at the back of the plane instead of plush, pricey ones in first and business class -- a trend Lufthansa says is easing for intercontinental travel.
Lufthansa said it was seeing the strongest growth on routes to North and South America, as well as to Asia, where it recently started operating A380 superjumbos to Tokyo and Beijing. In Europe prices are still under pressure, it said.
Industry body International Air Transport Association (IATA) has said it sees European carriers remaining in the red this year as weak economic growth and depressed consumer confidence keep travellers from splurging.
Euro zone consumer confidence has improved moderately in the aftermath of the global economic crisis, but stagnated at a weak level this month, pointing to slower economic growth in the second half of 2010.
Slower Growth on Radar
Major European airlines with a strong international route network, such as Lufthansa, Air France-KLM and British Airways have fared well in the recovery, but Lufthansa CFO Gemkow warned the pace would slow.
"The growth itself will be sustainable, but not at these rates," he told Reuters Insider TV in an interview, adding growth will slow as year-earlier comparable figures come out of a trough. "But we are very optimistic going forward."
Lufthansa had raised its 2010 outlook as it posted consensus-beating quarterly earnings.
It also said it expects to resume paying a dividend this year but did not give further details. Analysts on average see the carrier paying a 2010 dividend of 0.17 euros.
There was no dividend in 2009 -- the first time since 2003 -- after it posted a net loss of 148 million euros for the year.
Globally the airline sector is expected to post a 2010 profit of $8.9 billion, according to IATA. It lost $10 billion last year amid the economic crisis. (Reuters)
