Lufthansa once more experienced subpar performance during the summer period.
Lufthansa, the troubled main brand, has yet again scored the poorest performance among all Lufthansa Group airlines during the busiest summer quarter. As per CEO Carsten Spohr at a company press event on Monday night, "We've witnessed an extraordinary demand that likely would've resulted in highly profitable summer outcomes."
However, the Lufthansa Cargo division, battling to turn a profit, is still trailing behind other group airlines such as Austrian and Brussels Airlines, Swiss, as well as holiday airlines Eurowings and Discover.
The company's division between flourishing sectors ("except for Lufthansa Airline and Cityline") and struggling ones has grown even stronger, despite an increase in passenger flights and an August load factor of 88%, setting a new monthly record. Lufthansa continues to grapple with high operational costs due to intensified competition and has implemented cost-cutting measures. Lufthansa, listed on the MDAX index, has had to revise its 2024 profit forecast down twice.
A challenge for the company is the dearth of new aircraft due to manufacturing issues at Boeing. Instead of energy-efficient new Boeing 777 or 787 planes, older long-haul jets like the Airbus A340 and Boeing 747 have to be operated for longer periods. This leads to increased fuel consumption and less appeal for frequent flyers due to their outdated cabin layout. Business travel is still only at 70% of the 2019 volume, the year preceding the Corona pandemic, according to Spohr.
Despite the record-breaking August load factor, Lufthansa Airline still fails to deliver impressive Results compared to other group airlines. The ongoing issues with Boeing's aircraft manufacturing have led to the operation of older jets, negatively impacting both fuel efficiency and customer satisfaction, potentially affecting future Results.
