| Deutsche Lufthansa AG (DE0008232125) | |||
7,18 EURStand (close): 30.06.25 |
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| 26.06.25 12:00:00 | Air Canada Enhances its rail connections in Germany through Codeshare on Lufthansa Express Rail, operated by Deutsche Bahn |  |
| Partnership creates seamless and convenient rail connections at Frankfurt Airport MONTREAL, June 26, 2025 /CNW/ - Air Canada today announced an extension of its codeshare agreement with Lufthansa to include Lufthansa Express Rail services at Frankfurt Airport, operated by Deutsche Bahn. This agreement enables a seamless, intermodal itinerary booked in one reservation, offering greater flexibility, more choice, and added convenience to connect with Air Canada's up to five-times daily flights to Frankfurt Airport. The codeshare expansion enhances Air Canada's international rail and bus intermodal network, which includes intermodal interlining partnerships in seven European countries and South Korea.Air Canada today announced an extension of its codeshare agreement with Lufthansa to include Lufthansa Express Rail services at Frankfurt Airport, operated by Deutsche Bahn. (CNW Group/Air Canada) "Air Canada is very pleased to expand its rail offer in Germany with codeshare on Lufthansa Express Rail, operated by Deutsche Bahn, the Star Alliance's first intermodal partner. Our intermodal connections provide customers with more travel options and make it easier for them to reach their final destinations. By elevating our partnership to a codeshare, we enhance the travel experience for our customers, enabling them to book through Air Canada for both air and rail travel. Among its many benefits, this makes check-in and connecting seamless, and includes a transfer guarantee, ensuring customer support and rebooking assistance in the event of travel disruptions," said Mark Galardo, Executive Vice President & Chief Commercial Officer and President, Cargo. Customers can book their combined air and rail journey in Germany directly through the Air Canada website or via their travel agent. Customers arriving at or departing from Frankfurt airport will be able to connect onto Lufthansa Express Rail services to up to 24 stations as part of their flight itinerary. Frankfurt is a major destination for Air Canada, which will operate up to five times daily to the city in 2025. The agreement complements Air Canada's existing intermodal interlining partnership with Lufthansa Express Rail, as well as the Deutsche Bahn Rail&Fly product. Air Canada Intermodal Beginning in 2023, Air Canada launched air-to-rail booking options for customers to make intermodal connections at airports in eight countries. These include France's TGV-SNCF Voyageurs; Germany's Deutsche Bahn; Swiss Federal Railways; ÖBB, the national railway of Austria; Italy's Trenitalia; Spain's Renfe; and South Korea's KORAIL's KTX. In Britain, customers have access to LNER, Avanti West Coast, Great Western Rail, and the TransPennine Express, as well as the UK's leading scheduled coach operator, National Express. Story Continues Through the airline's partnership with Lufthansa Express Rail Product and new collaborations with AccesRail & WorldTicket, customers can use a streamlined booking process on www.aircanada.com to create a seamless travel itinerary that connects their flight with trips on trains or coaches. Additional details are available at www.aircanada.com. For more information on Air Canada intermodal see here Air Canada's partnership portfolio has doubled over the past decade with three joint business agreements, 40 codeshare, 120 interline and 13 intermodal rail options and one bus option across the transport ecosystem to over 1200 destinations, delivering a world-spanning array of travel choices for customers. Travelling internationally? Visit Air Canada's Travel Ready Hub for the latest government entry requirements. Customers are responsible for ensuring they meet all government entry requirements, including holding the correct travel documents, visas, any required health certificates, and all other eligibility requirements for any flights they purchase. About Air Canada Air Canada is Canada's largest airline, the country's flag carrier and a founding member of Star Alliance, the world's most comprehensive air transportation network. Air Canada provides scheduled service directly to more than 180 airports in Canada, the United States and Internationally on six continents. It holds a Four-Star ranking from Skytrax. Air Canada's Aeroplan program is Canada's premier travel loyalty program, where members can earn or redeem points on the world's largest airline partner network of 45 airlines, plus through an extensive range of merchandise, hotel and car rental partners. Through Air Canada Vacations, it offers more travel choices than any other Canadian tour operator to hundreds of destinations worldwide, with a wide selection of hotels, flights, cruises, day tours, and car rentals. Its freight division, Air Canada Cargo, provides air freight lift and connectivity to hundreds of destinations across six continents using Air Canada's passenger and freighter aircraft. Air Canada's climate-related ambition includes a long-term aspirational goal of net-zero greenhouse gas emissions by 2050. For additional information, please see Air Canada's TCFD disclosure. Air Canada shares are publicly traded on the TSX in Canada and the OTCQX in the US. Internet: aircanada.com/media Read our annual report Here Sign up for Air Canada news: aircanada.com Media Resources: Photos Videos B-Roll Articles SOURCE Air CanadaCision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2025/26/c4192.html View Comments |
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| 18.06.25 05:07:13 | Transatlantic airfares slump as Western Europeans skip US travel over Trump | |
| By Doyinsola Oladipo and Joanna Plucinska NEW YORK/LONDON (Reuters) -Transatlantic airfares have dropped to rates last seen before the pandemic, data shows, the latest sign that fewer Europeans are traveling to the U.S. due to concerns about U.S. border controls and President Donald Trump's policies. The trend could extend into and beyond the summer holiday period, typically the busiest time for airlines and travel companies. Overseas arrivals to the United States fell 2.8% in May from a year ago, according to preliminary data from the U.S. National Travel and Tourism Office within the U.S. Department of Commerce. Travel from Western Europe fell 4.4% in May, led by a decline in travelers from Denmark and Germany. Forward bookings suggest sustained declines are on the horizon, with total inbound bookings to the U.S. in July down 13% year-over-year, according to OAG Aviation, an analytics firm. The decline in demand will add to airlines' financial pain, particularly for European carriers such as Air France KLM and Germany-based Lufthansa. Those airlines are struggling with higher labor costs and oil prices, as well as disruption to flights due to Middle East conflicts, which adds time and costs to routes to and from Asia. Transatlantic airfare has been declining since the first quarter when Europeans started reconsidering travel to the U.S. after Trump suggested annexing Greenland, launched a global trade war, and issued orders to tighten border policy. A stronger dollar has also deterred some trips. Average round-trip economy airfares for over 50 routes from the U.S. to Europe in the first quarter were down an average of 7% year-over-year, with rates to fly between Atlanta, Georgia, and London, down 55%, according to data from Cirium, an aviation analytics firm. As American consumers have been bargain-hunting and waiting closer to their departure dates to finalize travel plans, the decline in demand from Europe is contributing to cheaper travel. This year will be a tougher one for airlines to make money on transatlantic routes, with fewer seats being filled by European travelers and slower growth in U.S. outbound travel to Europe than last year, said Aran Ryan, director of industry studies at Tourism Economics, a subsidiary of Oxford Economics. This summer, the price of round-trip tickets from the U.S. to Europe is down 10% from a year ago, travel booking app Hopper said. Average fares of $817 per ticket are in line with prices to Europe in the summer of 2019 before the pandemic. Major carriers expect slowing activity. Lufthansa CEO Carsten Spohr said the company expects weaker demand in the third quarter after a boom in the summer, while Air France KLM CEO Ben Smith said the company is seeing a "slight pullback" in transatlantic traffic and will slash prices to keep cabins on its transatlantic flights full. Story Continues Travel to the U.S. in May from Denmark, Germany, and France fell 20%, 19%, and 9% respectively. In March, Germany updated its travel advisory for the U.S., emphasizing that a visa does not guarantee entry. Lufthansa and U.S. air carrier United Airlines say higher demand from U.S. travelers flying to Europe is offsetting the decline of Europeans flying the opposite direction. United said international bookings from Europe fell 6% in the first quarter, but added that U.S.-originating demand made up for the pullback. Rival Delta Air Lines said 80% of its long-haul international demand originates from the U.S., and fares in the region are "significantly higher" than in the rest of the world. Lufthansa said it plans to market its transatlantic flights to more Americans, given the higher demand, despite travel from Western Europe showing moments of recovery. Travel from the region to the U.S. increased 12.1% in April before falling again in May, according to data from the NTTO. As of mid-May, there are 4.3% more international flights scheduled to depart from U.S. airports for international destinations this summer, said Hopper. "We feel really good about the transatlantic market," American Airlines CFO Devon May said at a Wolfe Research transportation and industrials conference in May. (Reporting by Doyinsola Oladipo in New YorkEditing by Rod Nickel) View Comments |
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| 18.06.25 05:07:13 | Transatlantic airfares slump as Western Europeans skip US travel | |
| By Doyinsola Oladipo and Joanna Plucinska NEW YORK/LONDON (Reuters) -Airfares from Europe to the United States have dropped to rates not seen since before the pandemic, as travelers from Western Europe lead a pullback in travel to the U.S. that is expected to continue through at least July. Overseas arrivals to the United States fell 2.8% in May from a year ago, according to preliminary data from the U.S. National Travel and Tourism Office within the U.S. Department of Commerce. Travel from Western Europe fell 4.4% in May although travel from Eastern Europe rose 4.6% in the same period. Forward bookings suggest sustained declines are on the horizon, with total inbound bookings to the U.S. in July down 13% year-over-year, according to OAG Aviation, an analytics firm. Transatlantic airfare has been declining since the first quarter when Europeans started reconsidering travel to the U.S. after President Donald Trump suggested annexing Greenland, launched a global trade war, and issued orders that focus on stricter border policy. A stronger dollar has also deterred some trips. In March, travel from Western Europe fell 17% year-over-year, according to the NTTO. Average round-trip economy airfares for over 50 routes from the U.S. to Europe in the first quarter were down an average of 7% year-over-year, with rates to fly between Atlanta, Georgia, and London, down 55%, according to data from Cirium, an aviation analytics firm. As American consumers have been bargain-hunting and waiting closer to their departure dates to finalize travel plans, the decline in demand from Europe is another factor contributing to cheaper travel. "Fewer seats filled by European travelers to the U.S., and a slower pace of growth in U.S. outbound to Europe than last year, will tend to cast 2025 as a tougher year to make money on transatlantic routes," said Aran Ryan, director of industry studies at Tourism Economics, a subsidiary of Oxford Economics. This summer, the price of round-trip tickets from the U.S. to Europe is down 10% compared with a year ago, travel booking app Hopper said. Average fares of $817 per ticket are in line with prices to Europe in the summer of 2019 before the pandemic. Major carriers, including Air France KLM and Germany-based Lufthansa, expect slowing activity. Lufthansa CEO Carsten Spohr said the company expects weaker demand in the third quarter, while Air France KLM CEO Ben Smith said the company is seeing a "slight pullback" in transatlantic traffic and will slash prices to keep cabins on its transatlantic flights full. Continua a leggere Airlines including Lufthansa and U.S. air carrier United Airlines say higher demand from U.S. travelers flying to Europe is offsetting the decline of Europeans flying the opposite direction. United said international bookings from Europe fell 6% in the first quarter, but added that U.S.-originating demand made up for the pullback. Rival Delta Air Lines said 80% of its long-haul international demand originates from the U.S., and fares in the region are "significantly higher" than in the rest of the world. Lufthansa said it plans to market its transatlantic flights to more Americans given the higher demand, despite travel from Western Europe showing moments of recovery. Travel from the region to the U.S. increased 12.1% in April before falling again in May, according to data from the NTTO. As of mid-May, there are 4.3% more international flights scheduled to depart from U.S. airports for international destinations this summer, said Hopper. "We feel really good about the transatlantic market," American Airlines CFO Devon May said at a Wolfe Research transportation and industrials conference in May. (Reporting by Doyinsola Oladipo in New YorkEditing by Rod Nickel) Visualizza commenti |
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| 13.06.25 08:01:51 | Lufthansa braces for dip in demand for flights to US in third quarter | |
| DUESSELDORF (Reuters) -Germany's Lufthansa is bracing for weaker demand in the third quarter for flights to the United States after a boom in the summer, according to CEO Carsten Spohr. Speaking at a business journalists' event late Thursday, Spohr said "the first quarter was better than the previous year, but we are seeing a levelling-off in the third quarter." The Lufthansa group of airlines, which includes Austrian Airlines, Brussels Airlines, Swiss and ITA Airways, flies to the United States 60 times a day. Spohr said the drop-off in demand in the third quarter was partly offset by stronger demand for flights from the U.S., where prices are higher, adding that the airline would increase the proportion of seats it markets there. Spohr said a restructuring currently underway at Lufthansa was on track and that it was expected to make a gross profit contribution of around 1.5 billion euros ($1.73 billion) by 2026. ($1 = 0.8660 euros) (Reporting by Tom Kaeckenhoff, Writing by Friederike Heine, Ediitng by Miranda Murray) View Comments |
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| 13.06.25 03:17:59 | After Israel strikes Iran, airlines divert flights as airspace closed | |
| By Lisa Barrington SEOUL (Reuters) -Airlines cleared out of the airspace over Israel, Iran, Iraq and Jordan on Friday after Israel launched attacks on targets in Iran, Flightradar24 data showed, with carriers scrambling to divert and cancel flights to keep passengers and crew safe. Proliferating conflict zones around the world are becoming an increasing burden on airline operations and profitability, and more of a safety concern. Six commercial aircraft have been shot down unintentionally and three nearly missed since 2001, according to aviation risk consultancy Osprey Flight Solutions. Israel on Friday said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon. Tel Aviv's Ben Gurion Airport was closed until further notice, and Israel's air defence units stood at high alert for possible retaliatory strikes from Iran. Israeli flag carrier El Al Airlines said it had suspended flights to and from Israel and was moving some of its planes out of the country. Israeli carrier Israir said it was evacuating its planes from Tel Aviv's airport, which it said was expected to remain closed through the weekend. Many global airlines had already halted flights to and from Tel Aviv after a missile fired by Yemen's Houthi rebels towards Israel on May 4 landed near the airport. Iranian airspace has been closed until further notice, according to state media and notices to pilots. As reports of strikes on Iran emerged, a number of commercial flights by airlines including Dubai's Emirates, Lufthansa and Air India were flying over Iran. Air India, which overflies Iran for its Europe and North American flights, said several flights were being diverted or returned to their origin, including ones from New York, Vancouver, Chicago and London. Lufthansa said its flights to Tehran have been suspended until further notice, and it would avoid Iranian, Iraqi and Israeli airspace for the time being. Emirates, which cancelled flights to and from Iraq, Jordan, Lebanon, and Iran after Israel's attack, did not immediately respond to a request for comment. Iraq early on Friday closed its airspace and suspended all traffic at its airports, Iraqi state media reported. Eastern Iraq near the border with Iran contains one of the world's busiest air corridors, with dozens of flights crossing between Europe and the Gulf, many on routes from Asia to Europe, at any one moment. Jordan, which sits between Israel and Iraq, closed its airspace several hours after the Israeli campaign began. Story Continues FLIGHT DIVERSIONS "Traffic is now diverting either south via Egypt and Saudi Arabia, or north via Turkey, Azerbaijan and Turkmenistan," according to Safe Airspace, a website run by OPSGROUP, a membership-based organisation that shares flight risk information. Flights from six airlines including Etihad Airways and Turkish Airlines were diverted to Baku, Azerbaijan according to its Heydar Aliyev International Airport. An Emirates flight from Manchester to Dubai was diverted to Istanbul and a flydubai flight from Belgrade diverted to Yerevan, Armenia. Budget carrier flydubai said it had suspended flights to Amman, Beirut, Damascus, Iran and Israel and a number of other flights had been cancelled, rerouted or returned to their departure airports. Qatar Airways cancelled its two scheduled flights to Damascus on Friday, Flightradar24 data shows. The Israeli-Palestinian conflict in the Middle East since October 2023 led to commercial aviation sharing the skies with short-notice barrages of drones and missiles across major flight paths – some of which were reportedly close enough to be seen by pilots and passengers. Airspace in the Middle East last year was crossed daily by 1,400 flights to and from Europe, Eurocontrol data show. Last year, planes were shot down by weaponry in Kazakhstan and in Sudan. These incidents followed the high-profile downing of Malaysia Airlines flight MH17 over eastern Ukraine in 2014 and of Ukraine International Airlines flight PS752 en route from Tehran in 2020. (Reporting by Lisa Barrington; Additional reporting by Steven Scheer and Christoph Steitz; Editing by Jamie Freed) |
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| 21.05.25 17:29:25 | Lufthansa Cargo to market capacity on ITA Airways, add Rome hub | |
| Lufthansa Cargo in mid-June will start selling cargo capacity and handling shipments on ITA Airways, the Italian carrier in which Deutsche Lufthansa AG acquired a 41% stake in January for nearly $350 million. The deal allows Lufthansa Cargo to make Rome its cargo hub for Southern Europe. Lufthansa’s cargo subsidiary will start marketing ITA cargo capacity under its own designated airway bill from Sao Paulo and Rio de Janeiro, as well as from Buenos Aires, Argentina, to Rome, on June 16, according to a news release on Monday. On all other routes, both airlines will initially operate under two separate airway bill numbers. Lufthansa Cargo will gradually take over the sale of ITA’s belly space on all routes, following necessary regulatory approvals. The addition of ITA will increase global belly capacity available to Lufthansa Cargo customers by almost 20%, while giving them an even denser network of city pairs to choose from, the company said. Lufthansa Cargo operates 12 Boeing 777 long-haul cargo jets and four Airbus A321 converted freighters in regional service. It received a new freighter from Boeing during the first quarter. An additional six aircraft are chartered from AeroLogic, a joint venture with DHL, and operated by AeroLogic on behalf of Lufthansa Cargo. Lufthansa Cargo also manages the belly cargo for Lufthansa Group’s passenger airlines, with the exception of Swiss International. “Along with our partner ITA Airways, we are excited to offer our customers even more attractive routes, additional capacities and solutions to and from Europe as well as worldwide to meet their transportation needs. … In addition to Frankfurt, Munich, Vienna and Brussels, Rome will be our 5th hub that will help us offer flexible and quality solutions to our customers. Our customers will benefit from even more reliable, faster connections to and from southern Europe,” said Lufthansa Cargo CEO Ashwin Bhat. Lufthansa Group has expressed interest in increasing its share of ITA Airways. The Italian government is the airline’s majority shareholder. ITA has a fleet of 99 aircraft, including 22 long-haul Airbus jets, and flies to 70 destinations around the world. Last week, Lufthansa Group made changes to Cargo’s executive leadership, moving Frank Bauer from chief financial officer and labor director to chief operating officer and installing Gregor Schleussner, currently head of finance, controlling and accounting at sister airline Eurowings, as CFO and chief human resources officer, effective July 1. Lufthansa Cargo’s revenue grew 21% year over year in the first quarter to $938.8 million, while adjusted earnings before interest and taxes increased to $70 million from a $24 million loss, thanks to increased yields, strong demand from China and lower costs. Story Continues Click here for more FreightWaves/American Shipper stories by Eric Kulisch. RELATED READING: Lufthansa handles some cargo for ITA Airways ahead of pending deal Lufthansa Cargo bolsters China partnerships as trade grows Lufthansa Cargo introduces freighter service from Vietnam to US The post Lufthansa Cargo to market capacity on ITA Airways, add Rome hub appeared first on FreightWaves. View Comments |
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| 16.05.25 23:05:19 | Lufthansa management should be tougher with unions, says top investor Kuehne | |
| BERLIN (Reuters) -Lufthansa's management should be more vigorous in fending off resistance from labour representatives, top investor Klaus-Michael Kuehne was quoted as saying on Saturday, pointing to the airline group's share price. Lufthansa is counting on lucrative transatlantic routes as it strives to revive its namesake core airline, bogged down by wage talks and high pay, and find new sources of revenue as it struggles to compete with Asian carriers. Shares in the group, which includes brands like Swiss, Austrian and more recently Italy's ITA, have gained around 6% year-to-date, roughly in line with its peer Air France-KLM but lagging well behind British Airways parent IAG. Kuehne told the Welt am Sonntag weekly newspaper that the German group had structural problems, adding that resistance from the works council and walkouts made management's work difficult. "Whether the executive board takes sufficient action remains to be seen. In my opinion, more could be done," said the 87-year-old billionaire investor, whose company Kuehne Aviation is Lufthansa's biggest shareholder with around a 15% stake. He also owns stakes in Swiss logistics group Kuehne + Nagel and German chemicals trader Brenntag. (Reporting by Thomas Seythal; Editing by Susan Fenton) View Comments |
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| 06.05.25 10:50:47 | Lufthansa chairman announces departure, search for successor on track | |
| FRANKFURT (Reuters) - Lufthansa Chairman Karl-Ludwig Kley will not run again as head of the German airline group's supervisory board, he told an annual investors' meeting on Tuesday, adding that the search for a successor in 2026 was on track. (Reporting by Ilona Wissenbach, Writing by Rachel More; Editing by Ludwig Burger) View Comments |
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| 05.05.25 06:40:11 | Air France, Lufthansa, others avoid Pakistan airspace amid India tensions | |
| By Abhijith Ganapavaram and Ariba Shahid NEW DELHI (Reuters) -Air France and Germany's Lufthansa were among global carriers avoiding Pakistani airspace, airlines said and flight-tracking websites showed on Monday, as tension between nuclear-armed neighbours India and Pakistan remained high after a deadly attack in Kashmir last month. India took measures such as closing its airspace to Pakistan airlines, while Pakistan barred those owned or operated by its neighbour, suspended trade and halted special visas for Indians, although it let international airlines use its airspace. Lufthansa Group's airlines are "avoiding Pakistani airspace until further notice" it said in a statement to Reuters, although that will result in longer flight times on some routes to Asia. Lufthansa Flight LH760 from Frankfurt to New Delhi had to fly for nearly an hour longer than usual on Sunday because it took a longer route, data from flight-tracking website Flightradar24 showed. Flight-tracking data showed some flights of British Airways, Swiss International Air Lines and Emirates travelling over the Arabian Sea and then turning north towards Delhi in order to avoid Pakistani airspace. British Airways and Emirates did not immediately respond to requests for comment. Air France said in a statement: "The airline has decided to suspend overflight of Pakistan until further notice," citing the "recent evolution of tensions" between India and Pakistan. The carrier said it was altering its flight schedule and flight plans with destinations such as Delhi, Bangkok and Ho Chi Minh, entailing longer flight times. Swiss, owned by Lufthansa Group, said the airline will rebook passengers who miss connecting flights free of charge. Airlines have also been reacting to developments in the Middle East, with European and U.S. carriers cancelling flights for several days after a missile fired by Yemen's Houthi rebels on Sunday landed near Israel's Ben Gurion Airport. Besides the longer distances and higher fuel costs for airlines, Pakistan may see a drop in its earnings from overflight fees, which can run into hundreds of dollars a flight depending on aircraft weight and distance covered. Pakistan's reserves with the central bank stand at $10.2 billion, barely enough to cover two months' worth of imports. "It could have a significant impact on some foreign airlines who rely heavily on Pakistan airspace as well as for Pakistan given the loss of overflight revenues," independent aviation analyst Brendan Sobie said. Story Continues Pakistan's civil aviation authority declined to comment. (Reporting by Abhijith Ganapavaram, Ariba Shahid; Editing by Aditya Kalra, Clarence Fernandez, David Evans and Hugh Lawson) View Comments |
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| 30.04.25 07:06:02 | Deutsche Lufthansa AG (DLAKF) Q1 2025 Earnings Call Highlights: Record Revenue and Strategic ... | |
| Revenue: Exceeded EUR8 billion for the first time in Q1, with a 10% growth. Adjusted EBIT: Improved by EUR127 million to minus EUR722 million. Passenger Airlines Capacity: Increased by 5% compared to the same quarter last year. Load Factor: Increased, contributing to higher yields. Adjusted Free Cash Flow: EUR835 million, significantly above last year's level. Net Debt: Decreased by 8% to EUR5.3 billion. Net Debt-to-EBITDA Leverage: Improved to 1.7 times from 2 times at the end of 2024. Fuel Cost Projection for 2025: EUR7.3 billion, EUR600 million below previous guidance. Passenger Airlines Operating Result: Minus EUR934 million, roughly on prior year's level. Lufthansa Cargo Adjusted EBIT: EUR62 million, an increase of EUR84 million. Lufthansa Technik Revenue: EUR2 billion, a growth rate of 14%. Lufthansa Technik Adjusted EBIT: EUR161 million, an increase of EUR53 million. Warning! GuruFocus has detected 3 Warning Signs with DLAKF. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Deutsche Lufthansa AG (DLAKF) reported record sales for Q1 2025, surpassing EUR8 billion with a 10% growth. Operational performance has improved significantly, with Lufthansa Airlines achieving the highest levels of regularity and punctuality in the last 10 years. The company has successfully increased capacity by 5% and translated this growth into higher yields and load factors. Lufthansa Technik and Lufthansa Cargo have shown strong performance, contributing positively to the group's revenue. The company has a robust hedging strategy, with 81% of fuel requirements hedged, providing financial stability against fuel price volatility. Negative Points There are early signs of softness in Q3 bookings, particularly for US destinations, which could impact future revenue. Material costs, excluding fuel, rose by 16% year-on-year, driven by price increases from service partners. Personnel expenses increased by 5%, contributing to overall cost inflation. The company faces challenges with delayed aircraft deliveries, impacting operational efficiency. There is limited visibility into Q3 demand, with potential risks of a slowdown in North Atlantic bookings. Q & A Highlights Q: Can you explain the year-on-year profit degradation in the passenger airline business despite decent revenue trends? A: Till Streichert, CFO, explained that while there was an improvement due to the Easter effect, cost increases, particularly from system partners and suppliers, impacted the bottom line. The first quarter was on track with expectations, and the Lufthansa Airlines turnaround is expected to contribute more in the second half of the year. Story Continues Q: What are your thoughts on the North Atlantic market, particularly regarding potential fare discounts to protect load factors? A: Carsten Spohr, CEO, stated that they do not plan to lower fares as it would not be value-creating. The current booking softness is attributed to news flow from Washington, and they expect some bookings to materialize in the coming weeks. Q: How are you managing cost increases, and what is the outlook for CASK (Cost per Available Seat Kilometer) throughout the year? A: Till Streichert, CFO, noted that Q2 will see higher CASK growth due to labor cost increases and prior year effects. However, they expect normalization in the second half of the year as turnaround program effects and fixed cost degression take hold. Q: What is the status of the Boeing 787 deliveries, and how will it impact operations? A: Carsten Spohr, CEO, mentioned that they expect 9 to 10 Boeing 787s by the end of the year. Initially, some seats will be blocked, but they will be fully operational by year-end, allowing for ramp-up in operations across various departments. Q: How is the integration of ITA Airways progressing, and what are the expectations for its performance? A: Carsten Spohr, CEO, indicated that ITA's integration is on track, with synergies expected to fully materialize by 2027. Initial upsides are anticipated in 2025, and the strategic investment in Italy is expected to pay off in the long term. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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