Lufthansa CEO Carsten Spor told me in Boston that they are seeing an extension in their summer travel season to fall and winter. They don't expect to see any drop in demand.
Spohr stated that this could be due to catch up effects, as many people had to cancel travel during the pandemic. The opening of the US was announced for November, exactly when winter season is in weaker demand.
Spohr is one of the most prominent airline CEOs. I was able to ask him about the positive trend Lufthansa is experiencing in business travel. Although it was at a low level in the third quarter, it is now growing strongly. Bookings for corporate segments are less seasonal so they should hold up until December. Spohr stated that there will not be a sudden drop in demand for the next winter.
He stated that Lufthansa's recovery was clearly visible, particularly in Lufthansa's major home markets of Germany and Austria, Belgium as well as Northern Italy, Northern Italy, and Switzerland. He said that we have used more aircraft recently and had already reinstated the hourly service on certain domestic German routes.
He said that the carrier is expanding their short-haul seat offering by 15% and adding frequency to use larger aircraft like the Airbus A321 for business travel.
Spohr states that although everyone knows about the benefits of video conferencing it is also evident that people have come to terms with their limitations.
This is why I'm not as pessimistic about business travel as last year. Now, we assume that the negative for business travel will be less than 10% in the medium-term.
Spohr pointed out that the airlines' recovery was slowing down due to still-strict Asia travel restrictions. He said that this is very unfortunate as the Lufthansa Group's Asia-bound traffic is an important business area. Lufthansa Group is number one in airline operations from Europe to Asia.
Spohr stated that the fact that China is not opening its doors to travelers or when all traffic rights for India flights can be used again is a burden on us all and global air traffic.
Because of First Class, A350 could be sent to SWISS.
Spohr stated that, despite the worst aviation crisis of the moment, Lufthansa Group will continue to invest approximately 2.5 billion ($2.9 million) annually in new aircraft. Lufthansa Group airlines will be receiving new aircraft under this decision. They will be allocated based on which hub is most likely to return the highest return.
Each airline in our group must have the ability to pay for the monthly cost of a new aircraft. He said that we need to be aware of which hub offers the best return on investment.
Austrian Airlines was mentioned as an example, as the three Boeing 767 300ERs that are aging need to be replaced. Austrian is an important part our core business. He said that Austrian is a leading airline, but it also competes with other airlines within the group [to acquire new aircraft].
Lufthansa recently signed a lease contract for four additional Airbus A350-900s.
Swiss International Air Lines will operate the A350s. The aircraft's wider cabin is also a reason why Swiss International Air Lines will be using it. Lufthansa CEO Carsten Spohr
Boeing 787-9 - Entry into Service
Lufthansa will name their first Boeing 787-9 "Berlin" after the aircraft is delivered next year.
Lufthansa's first Boeing 787-9 Dreamliner, "Berlin", will be the fifth in a series of five Dreamliners.
Lufthansa B787-9
Lufthansa has been naming its aircraft after German cities since 1960. Willy Brandt was West Germany's Chancellor from the 1960s and 1970s. He named the first Boeing 707 "Berlin" during his term as Mayor of West Berlin (19571966). A D-AIMIMI registration number gave an Airbus A380 the honorific name of Germany's capital. D-ABPA will register the first Lufthansa Boeing 787-9 – "Berlin" –
Toronto, Canada will be the first planned intercontinental destination of Lufthansas' 787-9.
