Lufthansa Group remains on course for modernisation

posted on 10th May 2018 by Justin Burns
Lufthansa Group remains on course for modernisation

The Lufthansa Group is on a successful path to “modernisation”, according to the airline group’s chairman Carsten Spohr (pictured above).

Lufthansa held its Annual General Meeting earlier this week, and Spohr said: “The Lufthansa Group has become more modern, significantly more efficient and more profitable in all areas.

“Everyone has benefited from the modernisation: Our customers, our employees and our shareholders.”

In 2017, the Lufthansa Group revenue rose by 12.4 per cent to €35.6 billion in 2017 while adjusted EBIT increased by about 70 per cent to nearly €3 billion and a margin of 8.4 per cent was achieved.

“2017 was the most successful year in the history of Lufthansa, and the third time in a row that we presented record results. By far, we achieved the best result ever,” said Spohr.

The airline group said it stands firmly on three pillars: the Network Airlines, the Eurowings Group and Aviation Services.

Lufthansa, SWISS and Austrian Airlines are continuing to invest in quality and digitalization, but the focus remains on further cost savings and the continuous modernisation of the fleet is also contributing, as the operating costs of the new aircraft are around 20 per cent lower.

Eurowings continues to consistently focus on profitable growth, thus securing the Lufthansa Group’s leading position in point-to-point transport in its domestic markets. Aviation Services contributed well over €700 million to the positive result.

Spohr added: “We will continue balancing the interests of our customers, employees and shareholders to ensure sustainable success. The topics on the way there remain the same: increasing quality. Reduce costs. Improve efficiency.”

This week, on the back of improving results, the Lufthansa Group made a $2.5 billion aircraft order including up to six Airbus A320ceos to make up for delivery shortfalls on the Airbus A320neo which adds to the six options converted for A320neos to firm orders.

The Group also ordered two Boeing 777-300ERs for its SWISS subsidiary and two further Boeing 777F for Lufthansa Cargo, which will replace older MD-11s.