Supply chain issues and late deliveries of new aircraft will cause capacity shortages in the future.
"Over capacity issues which our industry have seen before the Pandemic, won't be around any time soon", said the CEO of the group during the third quarter financial results call.
The offered capacity at the passenger airlines is expected to be 75% of what it was in 2019. In a strong summer, we had more than 600 aircraft.
"Lufthansa reached a billion in EBIT. In all modesty, we have left the crisis modus behind us. However, Bottlenecks will limit the reconstruction of our industry."
Carsten Spohr, Lufthansa Group CEO
The head of Europe's largest airline group said that there are factors that will limit capacity worldwide but also increase ticket prices.
Maintenance is affected by supply chain issues. We don't have enough aircraft in operation to meet our needs. There are no cockpit windows for the Boeing 787 in the world.
Around 200 aircraft are expected to be delivered by the group before the year 2030.
There is a shortage of pilots in the United States. High fees will affect capacity expansion. High load factors and healthy fares result from the shortage.
Business travelers demand more from the group. The CEO thinks that leisure traffic will work out.
“One summer has been not enough to fulfill the desire for traveling. This topic of traveling remains high on the agenda."
Carsten Spohr, Lufthansa Group CEO
The third quarter of the year is traditionally the high-traffic one. Net income more than doubled in the third quarter to 809 million, compared to a loss of 72 million a year ago.
Without closed markets like Asia, the results have been great. Japan is coming along, and possibly to a limited extent, China too in the future.
Flexibility is allowed by the global organization of the group. Outside of Germany, three of the four tickets will be sold. This is the first time we've had this before. It has a large amount of it. Revenues in the US increased by 15%.
Passengers in Lufthansa's premium classes reached a level similar to before COVID-19. He said that passengers continue to book.
The airline was able to operate 99% of its flights.
“We achieved an 11.2% margin, 33 million passengers have flown between July and September, and all Business units are positive. Lufthansa Group expects to generate an Adjusted free cash flow of over 2 billion euros in 2022."
Carsten Spohr, Lufthansa Group CEO
The company will increase the number of employees by the end of the decade. We hire one thousand employees per month.
There is a global demand for aircraft maintenance. The volume of business was close to the pre- crisis level. The third quarter was the best quarter in the company's history.
In the first nine months of this year, Lufthansa Cargo has already achieved an operating profit of 1.3 billion and is on course for a full-year result even higher than last year's record.
Austrian Airlines and Brussels Airlines are subsidiaries of the Lufthansa Group. The governments of Austria and Belgium helped stabilizing the companies. Austrian Airlines will pay back the rest of the loan, while Brussels Airlines will repay the rest. The stabilization measures will end early.
Austrian Airlines returned to profitability in the third quarter of the year. A total of 64 aircraft will be added to the fleet by the spring of23.
The airlines revenue increased during the third quarter to 436 million. A total of 36 medium-haul and nine long-haul aircraft will be added by the Belgian airline in the years to come.
Swiss International Airlines reported an operating profit of 220.5 million in the third quarter, compared to 22.7 million in the third quarter of the previous year.
Lufthansa Unveils New Cabins – First and Business Class Suites
All Rights Reserved © 2024
