Lufthansa CEO aims to revive 'problem child' airline by 2026
By Ilona Wissenbach and Joanna Plucinska
FRANKFURT, Oct 1 (Reuters) -Lufthansa LHAG.DE is aiming to revive its core airline by 2026 as one of Europe's top carriers struggles more than its regional rivals with higher costs and prolonged delays in Boeing BA.N plane deliveries, its chief executive said.
Carsten Spohr described the Lufthansa airline as the German group's "problem child" and said turning it around is a must for the wider company's success.
"(It's) a clear goal that the Lufthansa airline will once again be our flagship for its 100th birthday in 2026," he told reporters at a briefing late on Monday.
The comment comes as investors fret about the group's third-quarter results due on Oct. 29, with its shares down 10% over the last six months.
Lufthansa, which also counts Austrian Airlines, Swiss and Eurowings among its carriers, has already issued two profit warnings this year, as spiralling wage costs, a squeeze on ticket prices and a tough aviation market make for a difficult recovery.
The delayed delivery of much-needed new jets is compounding ongoing issues, Spohr said, adding that Lufthansa had been hit "disproportionately" hard.
"We were just caught at exactly the wrong time, just (when it came to) the fleet modernisation," Spohr said.
Lufthansa is still waiting for 41 new Boeing planes to arrive, with the 777x jets on order already facing years-long delays.
That has forced the airline to keep using the older Airbus AIR.PA planes the group had hoped to retire before the pandemic, Spohr said, hurting its ability to expand services on profitable routes and boost efficiency as newer planes use less jet fuel.
"We're flying 23 aircraft that we didn't want to fly anymore," he said.
Other European airlines, including Ryanair RYA.I, have also been hurt by Boeing's long delivery delays.
FINANCIAL STABILITY
One way to revive Lufthansa's fortunes is to invest in further international growth, Spohr said, including its stake in Italian carrier ITA Airways.
Lufthansa has struggled with competition on its transatlantic and Asian routes, recently cancelling its Frankfurt to Beijing flights as Chinese carriers increased capacity.
The country's airlines have been gaining market share on international routes as foreign airlines are deterred by weak Chinese travel demand, rising costs and extended flight times as they avoid Russian airspace due to the Ukraine conflict.
Lufthansa has said that it hopes to expand into newer regions, including Latin America and Africa, where it might have more of an advantage. New hubs with lower cost bases, such as in Italy, are also appealing ways to strengthen revenue and boost margins.
Reporting by Ilona Wissenbach and Joanna Plucinska in Frankfurt;
Editing by Josephine Mason, Kirsten Donovan
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
