4 godzin temu
MUNICH- Lufthansa Group advances its historic fleet modernization, scheduling delivery of a new, highly efficient aircraft biweekly throughout 2025. The company’s order list encompasses approximately 250 aircraft, including 100 long-haul models.
Lufthansa Group anticipates sustained high air travel demand, evidenced by strong early 2025 bookings and robust MRO segment orders. Lufthansa Cargo expects to leverage e-commerce growth and its improved cost position for continued success.
Photo: Clément AlloingLufthansa New Aircraft Delivery
The company designates 2025 as a transition year, prioritizing Lufthansa Airlines’ turnaround program to establish foundations for sustainable earnings growth. Initial measures will implement this year, though full program benefits remain forthcoming.
Fleet renewal and premium offering investments directly enhance customer satisfaction. Nine Airbus A350s currently feature Allegris configurations, with seven incorporating the new First Class.
SWISS (LX) plans unprecedented Economy Class improvements this year, followed by SWISS Senses introduction on long-haul routes during the second half of 2025.
The company projects a four percent passenger airline seating capacity expansion compared to previous year figures, anticipating corresponding revenue growth from strong ticket demand.
Lufthansa Group forecasts significantly higher Adjusted EBIT for fiscal 2025 compared to the previous year, with expected net capital expenditure between EUR 2.7 and 3.3 billion and free cash flow maintaining previous year levels.
Photo: Clément Alloing2024 Full-year Earnings
Deutsche Lufthansa AG CEO Carsten Spohr highlights aviation’s enduring role as a future-oriented industry with strong demand, especially during unstable times when it facilitates international understanding through cultural and economic exchanges. Lufthansa Group achieved record-breaking revenue and load factors in 2024, prompting Spohr to thank customers for their loyalty and employees for their dedication.
Spohr characterizes 2024 as a year divided into two distinct phases for Lufthansa Group. The first half presented significant operating profit challenges stemming from strikes, delayed aircraft deliveries, and operational difficulties at hub airports.
The company reversed this trend during the latter half of the year, generating unprecedented quarterly revenues exceeding 10 billion euros twice consecutively, with fourth quarter profits surpassing the previous year’s figures.
Spohr emphasizes that Lufthansa Group’s further internationalization through ITA Airways integration, improved flight operations stability, and increasing customer satisfaction validate the company’s strategic direction and effectiveness of implemented measures. He acknowledges the imperative for an economic turnaround at the core Lufthansa brand, designating 2025 as a transformation year aimed at strengthening the Group’s position as the global leader outside the United States.
Lufthansa Group increased its revenue by six percent year-on-year to EUR 37.6 billion compared to EUR 35.4 billion previously, marking the highest revenue in company history. The Group generated an operating profit (Adjusted EBIT) of EUR 1.6 billion with a 4.4 percent operating margin, compared to EUR 2.7 billion and 7.6 percent respectively in the previous year.
The year-over-year decline stems from various factors predominantly affecting the first half: strikes impacted Passenger Airlines by approximately EUR 450 million, airlines absorbed significant early summer average yield declines due to industry-wide capacity increases, and substantially higher costs in Germany negatively affected performance. Flight operations productivity suffered from continued aircraft delivery delays.
The net profit declined less sharply than operating results, reaching EUR 1.4 billion compared to EUR 1.7 billion in the previous year, partly due to lower interest burdens.
Photo: By Lasse Fuss – Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=18058671Capacity Expansion in 2024
Lufthansa Group Passenger Airlines expanded capacity in 2024, welcoming 131 million guests aboard their aircraft, representing a seven percent increase over the previous year.
The passenger load factor climbed to a record 83.1 percent compared to 82.9 percent previously. July and August proved exceptionally strong with load factors approaching 88 percent, ranking among the strongest months in company history.
Industry-wide capacity growth drove average yields down by 2.6 percent year-on-year, though performance significantly improved throughout the year. Yield variations differed substantially across traffic regions, with most regions experiencing declines below two percent while the Asia/Pacific region suffered a pronounced decrease of almost 10 percent.
Unit revenues benefited from increased seat load factors compared to 2023, but high compensation payments for flight irregularities undermined underlying revenue, causing overall unit revenues to fall by 4.3 percent.
Unit costs rose by 1.9 percent year-on-year due to strike effects and persistent cost inflation, particularly affecting fees, materials, and personnel expenses.
The Group’s passenger airlines generated Adjusted EBIT of EUR 1.0 billion in 2024, down from EUR 2.0 billion the previous year. This decline primarily stems from Lufthansa Airlines’ earnings decrease of EUR 948 million.
Delayed new aircraft deliveries forced Lufthansa Airlines to extend existing fleet service, which combined with higher location and personnel costs plus increased flight irregularity compensation expenses, disproportionately impacted earnings.
SWISS nearly matched its previous year’s record result, exceeding EUR 800 million Adjusted EBIT for the second consecutive time. Eurowings replicated its strong previous-year performance with Adjusted EBIT again surpassing EUR 200 million.
Brussels Airlines (SN) achieved its highest historical profit at EUR 60 million, while Austrian Airlines recorded an Adjusted EBIT of EUR 76 million.
Photo: Lufthansa GroupTurnaround Program
Lufthansa Airlines pursues its turnaround program with determination since its initiation eight months ago, focusing on efficiency improvements, complexity reduction, and product quality enhancement to secure long-term competitiveness.
The measures initially target operational stability, with Lufthansa Airlines already experiencing notable punctuality and regularity improvements during January and February 2025.
The establishment of “City Airlines” proves strategically advantageous for operating European short-haul flights more efficiently and cost-effectively.
The turnaround program will progressively enhance Lufthansa Airlines’ earnings performance. Implemented measures expect to achieve a gross EBIT impact of approximately EUR 1.5 billion by 2026, increasing to around EUR 2.5 billion by 2028.
Deutsche Lufthansa AG Chief Financial Officer Till Streichert states:
This year, we expect moderate capacity growth of around 4 percent. This will help to support our revenue growth, secure valuable market shares, stabilise our earnings and further improve our operations. Nevertheless, current challenges will persist. These include delays in aircraft deliveries and ever-present cost pressures. We therefore regard 2025 as a transition year in which we will lay the foundations for future increases in profitability. Nevertheless, progress will be clearly visible in every respect. This will also be reflected in our Adjusted EBIT, which we expect to be significantly higher than in the previous year.”
The Lufthansa Group will implement a new umbrella brand strategy in 2025 designed to make Group advantages more tangible for customers. This initiative aims to better integrate synergies arising from interactions between the company’s various airlines.
Approximately half of all Lufthansa Group transfer passengers currently utilize multiple airlines within the Group, benefiting from complementary route networks, shared ground infrastructure, and the company’s industry-leading app.
The LUFTHANSA GROUP umbrella brand will enhance transparency regarding connections between individual brands and clarify how they function together within the airline consortium.
Feature Image by Clément Alloing | Flickr
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The post Lufthansa to Take Delivery of New Aircraft Every Two Weeks in 2025, €1.6 Bn Profit and More appeared first on Aviation A2Z.
