Tag: Lufthansa (Page 2 of 8)

Lufthansa Group Successfully Secures Further Liquidity on the Capital Market

November 10, 2021 / WIL BALDWIN

Third corporate bond of 1.5 billion euros issued in 2021
Lufthansa Group takes advantage of favorable market conditions
Placement with two maturities of two and five-and-a-half years complements Lufthansa Group’s maturity profile

Deutsche Lufthansa AG (OTC: DLAKY) has again successfully issued a bond with a total volume of 1.5 billion euros. The bond, with a denomination of 100,000 euros, was placed in two tranches with terms of two and five-and-a-half years respectively. The tranche with a term until 16 November 2023 has a volume of 600 million euros and bears interest of 1.625 percent per year. The tranche with a term until 16 May 2027 has a volume of 900 million euros and bears interest of 2.875 percent. The two tranches over two and five-and-a-half years fit perfectly into the Group’s maturity profile.

Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG, stated: “The long-term funds, which were again raised at attractive terms, will be used to further strengthen the Lufthansa Group’s liquidity and refinance existing debt. This placement is one of several successful capital market transactions that we have executed since the end of last year and will further contribute to the full repayment of the government stabilization measures in Germany.”

SWISS Reports Marginally Positive Earnings for Third Quarter Quarter

November 4, 2021 / WIL BALDWIN

The coronavirus pandemic depressed earnings at Swiss International Air Lines (SWISS) in the first nine months of 2021, too. Following an extremely challenging winter period, however, spring 2021 saw a slight recovery in demand which then strengthened in the summer months.

Marginally positive Adjusted EBIT for the seasonally strong third quarter

SWISS witnessed a significant increase in air travel in the traditionally strongest third-quarter period which, thanks to a certain catch-up effect, extended into autumn. The company was able to raise its summer-months capacities to 55 per cent of their pre-crisis levels, and was able to sell the additional production, too. Third-quarter revenue rose by 91.0 per cent as a result, from the CHF 370.5 million of 2020 to CHF 707.8 million. The combination of higher production and sizeable cost reductions enabled SWISS to report an Adjusted EBIT of CHF 6.7 million for the period (Q3 2020: CHF -148.3 million). The positive third-quarter earnings reduced the operating loss for the first nine months of the year to CHF -391 million (Q1-3 2020: CHF -415 million), even though the first two months of 2020 had been unaffected by the coming crisis. Total revenue for the first nine months of 2021 was some 11 per cent down on the prior-year period at CHF 1.37 billion (Q1-3 2020: CHF 1.54 billion). Very strong demand on the cargo front continued to partially make up for the weak passenger business.

“We are delighted to have achieved a marginally positive earnings result for the third quarter of this year,” says SWISS CFO Markus Binkert. “We were able to both sell our increased capacities and further lower our costs over the summer months. But our third-quarter earnings result is still substantially below its pre-crisis levels.” For seasonal reasons, SWISS will be unable to emulate these positive quarterly earnings in the current fourth-quarter period, and the company expects to report a substantially negative earnings result for 2021 as a whole.

Restructuring measures initiated are having their effect

The actions taken under the ‘reach’ strategic restructuring programme to achieve recurring savings of some CHF 500 million are progressing according to plan. Five Airbus A330s have been temporarily stored to downsize the long-haul aircraft fleet. A reduction should also be effected in the short-haul fleet by withdrawing older aircraft of the Airbus A320 family earlier than planned and deferring deliveries of new Airbus A320neo family aircraft. The number of aircraft of other airlines operating SWISS services on SWISS’s behalf under wet-lease agreements should also be reduced. Two further new Airbus A320neo aircraft will be delivered to SWISS this year.

SWISS’s liquidity also continues to steadily improve. The company now expects to utilize no more than half of its bank credit facility, and is also confident of repaying such loans ahead of their maturity. “The actions we have taken under our restructuring are having their effect, and we are on track to overcome the crisis. With the revival in air travel worldwide, which has been further boosted by the announcement that the USA is opening up again, we now expect to be able to raise our capacities next year to at least 70 per cent of their pre-crisis levels,” says CFO Markus Binkert.

Strong passenger growth in the summer months

SWISS registered increases in its passenger numbers of 88.3 per cent for July, 123.7 per cent for August and 204.6 per cent for September 2021 compared to their prior-year periods. Systemwide seat load factor for the third-quarter period amounted to 66.4 per cent, on capacity that was at 55 per cent of its pre-crisis level. Seat load factors on SWISS’s European network remained higher than those on its intercontinental routes, though the latter were still a substantial improvement on their 2020 levels.

SWISS¹transported 3.7 million passengers in the first nine months of 2021, some 15.2 per cent²fewer than it had carried in the same period last year. A total of 35,264 flights were performed in the period, 14.6 per cent fewer than in January-to-September 2020. Nine-month systemwide capacity was 3.4 per cent down in available seat-kilometre (ASK) terms, while total traffic volume, measured in revenue passenger-kilometres (RPKs), saw a 23.7-per-cent decline. Nine-month systemwide seat load factor stood at 50.7 per cent, 13.5 percentage points below its prior-year level.

For the fourth quarter of 2021 SWISS will continue to offer more than 50 per cent of its pre-crisis capacities and thereby maintain a flight programme that is as stable and reliable as possible. Some 90 destinations are served from Zurich and Geneva in the current winter schedules – broadly the same number of points that were served before the present crisis, but with fewer frequencies. The aircraft providing these services also include three long-haul Boeing 777s which were temporarily converted to operate cargo-only flights in response to the pandemic, but which have now been converted back for regular passenger use.

¹Excluding Edelweiss Air

²In line with the provisions and practice of the Lufthansa Group, SWISS has modified the definitions used in its traffic volume reporting, with retroactive effect to 1 January 2021. This is also reflected in the corresponding year-on-year comparisons.

The photo was taken from right window of commercial airplane, Tokyo Haneda (HND) to Osaka International Airport Itami (ITM) in the daytime. The center and bottom island is Enoshima Island in Fujisawa city. The bottom sea is Sagami Bay, Northern Pacific Ocean.

Germany Signs Up for Five Boeing P-8A Poseidon Aircraft

June 30, 2021 / WIL BALDWIN

BERLIN, Germany June 30, 2021 — The German Ministry of Defense today signed a letter of offer and acceptance for five Boeing (NYSE: BA) P-8A Poseidon aircraft under the U.S. government’s Foreign Military Sales (FMS) process. With this order, Germany becomes the eighth customer of the multimission maritime surveillance aircraft, joining the United States, Australia, India, the United Kingdom, Norway, Korea and New Zealand.

The P-8A Poseidon offers unique multimission capability and is the only aircraft in service and in production that meets the full range of maritime challenges faced by European nations. Deployed around the world with more than 130 aircraft in service, and over 300,000 collective flight hours, the P-8A is vital for global anti-submarine warfare, intelligence, surveillance and reconnaissance and search-and-rescue operations.

German companies that already supply parts for the P-8A include Aljo Aluminum-Bau Jonischeit GmbH and Nord-Micro GmbH. Recently, Boeing signed agreements with ESG Elektroniksystem-und Logistik-GmbH and Lufthansa Technik to collaborate in systems integration, training, support and sustainment work. By working with local suppliers, Boeing will provide support, training and maintenance solutions that will bring the highest operational availability to fulfill the German Navy’s missions.

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing’s diverse team is committed to innovating for the future and living the company’s core values of safety, quality and integrity.

Lufthansa to Fly Boeing 747 and Airbus A350 to Mallorca Due to High Demand

June 11, 2021 / WIL BALDWIN

– Wide body aircraft to operate to Palma de Mallorca from both Frankfurt and Munich

– First departure planned from Frankfurt on July 17 and on July 31 from Munich

– Tickets now available for booking

Lufthansa is taking extraordinary measures in order to respond to a significant increase in booking demand for flights to Palma de Mallorca from both Frankfurt and Munich. The booking figures for the destination “PMI” have increased 25 times between April and the beginning of June 2021: The airline will be operating a Boeing 747-8 from Frankfurt to Palma de Mallorca four Saturdays in a row during the upcoming summer vacation in Hesse. Additionally, the airline also plans to operate an Airbus A350 from Munich to the Balearic Island at the start of the summer vacation in Bavaria. Although these routes are normally operated by an Airbus A321, on 31 July, two wide-body Lufthansa aircraft will be arriving on Palma de Mallorca.

Departing Frankfurt with the “Jumbo”

The Boeing 747-8 is the largest aircraft that Lufthansa is currently operating, offering up to 364 seats instead of the usual 215, which are normally available on this route. This wide-body aircraft offers passengers 88 Business Class seats (including First Class) as well as 276 seats in Economy Class (including Premium Economy).

The first “Jumbo” flight, LH1152, will be departing the Rhine Main metropolis on Saturday 17July at 10:20 a.m., just in time for the start of the Hessian summer vacation, and arrive at Palma de Mallorca airport at 12:25 p.m. The return flight, LH1153 will take place the same day at 14:25 p.m., arriving in Frankfurt at 16:45 p.m.

The modern and kerosene-efficient Boeing 747-8, also known as the “Queen of the Skies”, will operate for an addition three weekends, specifically on 24 July, 31 July and 7 August.

Departing Munich with the Airbus A350

The Airbus A350 is the most sustainable long-haul aircraft in the Lufthansa fleet. It consumes 20 percent less kerosene and is 50 percent quieter than previous models. Those who want to experience the Lufthansa Airbus A350 along with its multi-award-winning cabin now have the chance to do so now. The aircraft offers 293 seats, including 48 in Business Class and 245 in Economy Class (including Premium Economy).

The A350 flight to Palma de Mallorca will take place at the start of the Bavarian summer vacations on Saturday 31 July. Departure from Munich is planned for 9:50 a.m. under flight number LH2658, arriving in Palma de Mallorca at 12:00 a.m. The return flight, LH2659, will take place the same day at 13:30 a.m. arriving in Munich at 15:35 p.m.

Lufthansa Finally Re-opens First Class Lounge at Frankfurt Airport

June 4, 2021 / WIL BALDWIN

Starting on 1 June, Lufthansa will be welcoming guests to the First Class Lounge again

Further lounges to open gradually over the next few weeks

As summer approaches, the desire to travel continues to grow: Declining infection rates and the easing of travel restrictions are making more people want to fly again. In response to the rising booking figures, Lufthansa is using this as an opportunity to reopen the Lufthansa First Class Lounge in Terminal 1 of Frankfurt Airport starting on 1 June.

Relaxing while waiting for departure

The lounge offers an exclusive and comfortable place to relax, while travelers are waiting for their departure. The range of products offered in the lounges have been adjusted to meet current regulations. At present, food and beverage consumption is only permitted outside of the lounge. A take-away offer is available in the First Class Lounge, with a good selection of food and beverages. The popular “á la carte” service will also be resumed as soon as official regulations allow us to do so.

First Class guests can now also enjoy the usual personal service. The First Class Lounge is open daily from 6 a.m. to 9:30 p.m.

Lufthansa lounges open their doors to guests

Lufthansa guests can already access some of the lounges in Germany as well as abroad, such as New York. In the upcoming weeks, additional Lufthansa lounges will gradually be re-opening for customers. Soon, the First Class Terminal and the associated limousine service will also be made available again. A variety of measures, such as maintaining distance and wearing a mouth and nose covering, ensure that the lounge stay meets high safety and hygiene standards.

For more information on lounges and on-site conditions, visit https://www.lufthansa.com/de/en/lounges

Lufthansa Airbus A350-900 “Erfurt” Will Become Climate Research Aircraft

April 7, 2021 / WIL BALDWIN

Predicting the weather even more accurately, analyzing climate changes even more precisely, researching even better how the world is developing. This is the goal of a globally unique cooperation between Lufthansa and several research institutes.

Converting an aircraft into a climate research plane poses major challenges. Lufthansa has chosen the most modern and economical long-haul jet in its fleet – an Airbus A350-900 named “Erfurt” (registration D-AIXJ). In three stages, the “Erfurt” will now become a flying research laboratory.

In Lufthansa Technik’s hangar in Malta, the first and most extensive conversion work was carried out. Preparations were made for a complex air intake system below the belly. This was followed by a series of test insertions, at the end of which came the certification of a climate research laboratory weighing around 1.6 tons, the so-called CARIBIC measurement laboratory. The acronym CARIBIC stands for “Civil Aircraft for the Regular Investigation of the atmosphere Based on an Instrument Container” is part of a comprehensive European research consortium.

The “Erfurt” is expected to take off from Munich at the end of 2021 for its first flight in the service of climate research, measuring around 100 different trace gases, aerosol and cloud parameters in the tropopause region (at an altitude of nine to twelve kilometers). Lufthansa is thus making a valuable contribution to climate research, which can use these unique data to assess the performance of current atmospheric and climate models and thus their predictive power for the Earth’s future climate. The special feature: Climate-relevant parameters can be recorded at this altitude with much greater accuracy and temporal resolution on board the aircraft than with satellite-based or ground-based systems.

The A350 conversion, which has now been launched, was preceded by an ex-tremely elaborate planning and development phase of about four years involving more than ten companies (in particular Lufthansa, Lufthansa Technik, Airbus, Saf-ran, enviscope, and Dynatec) as well as the Karlsruhe Institute of Technology (KIT) as representative of a larger scientific consortium.

The Lufthansa Group has been a reliable partner of climate research since 1994 and has since equipped several aircraft with special instruments. This is now the first time worldwide on an Airbus A350-900 aircraft.

Lufthansa Group Prepares for Strong Growth in 2021 After Loss of 5.5 Billion Euros

March 7, 2021 / WIL BALDWIN

Lufthansa-Group-Annual-Report-2020

Britta Seeger, Mitglied des Vorstandes der Daimler AG, verantwortlich für Mercedes-Benz Cars Vertrieb & Marketing // Britta Seeger, member of the Board of Management of Daimler AG responsible for Mercedes-Benz Cars Sales & Marketing

Lufthansa Supervisory Board Nominates Britta Seeger, Extends Detlef Kayser

March 3, 2021 / WIL BALDWIN

Stephan Sturm will resign from the Supervisory Board of Deutsche Lufthansa AG (XETRA: LHA.DE), which will go into effect after the Annual General Meeting on May 4, 2021. The Chairman of the Executive Board of Fresenius has been a member of the Lufthansa Supervisory Board since April 2015 and has chaired the Audit Committee since January 2018.

The Supervisory Board Nomination Committee has proposed that Britta Seeger fill the vacancy. The 51-year-old business economist has been a member of the Board of Management of Daimler AG (XETRA: DAI.DE) since 2017 and is responsible for Mercedes-Benz Cars Sales. The Bonn-born manager will be nominated for election at the Annual General Meeting on May 4.

The responsibility as Chairman of the Audit Committee, which is currently held by Stephan Sturm, will be transferred to Harald Krüger at the Annual General Meeting, according to the will of the Supervisory Board.

At a meeting today, the Supervisory Board also decided to extend Detlef Kayser’s (55) contract ahead of schedule for three more years until December 31, 2024.

Dr. Detlef Kayser has been a member of the Executive Board of Deutsche Lufthansa AG since January 1, 2019. As “Chief Operations Officer” he is responsible for the operational processes and fleet and infrastructure management of the Lufthansa Group along with the Group-wide “ReNew” restructuring program.

Lufthansa Group Streamlines Pilot Training Program within ReNew Framework

February 19, 2021 / WIL BALDWIN

The global aviation crisis caused by the pandemic continues to have serious consequences for employees working in the airline industry. As a result, pilot training has also been severely affected by the repercussions of the crisis, as the need for recruitment has decreased.

Nevertheless, Lufthansa has decided to use the interruption caused by the crisis to fundamentally modernize the existing training concept at its in-house flight schools. The principle of ab-initio training will remain in place, as it has been proven to be successful for decades. However, in the future, a so-called “campus model” framework will provide modern, digital forms of training along with new selection procedures. These will enable more needs-based training for the various airlines of the Lufthansa Group and take into account the volatile demand in air traffic.

The campus training will be comparable to a university study program with defined qualification and training standards resulting in an institutionalized, internationally recognizable degree. After completing the training, graduates will be recruited depending on the demand situation of the respective flight operations of the various airlines of the Lufthansa Group.

Consequently, this gives the current generation of student pilots another perspective on a possible entry into cockpits at Lufthansa Group Airlines later on. In view of the current lack of prospects for pilot careers within the Lufthansa Group, last year the Group’s training division, Lufthansa Aviation Training (LAT), offered all flight students the option of ending their training without incurring any costs or, alternatively, continuing their training at another flight school.

Part of the new training concept is to provide theoretical and practical training, which is located closer to the customer. In the future, the theoretical part will be concentrated at the traditional Bremen location, where the digital modules for theoretical pilot training will also be developed. The practical part of the training, which is scheduled to take place in Germany, will be consolidated at Rostock-Laage: LAT already operates a modern and recognized training facility at “RLG” airport, the site of its largest external customer.

Lufthansa Innovation Hub Spins-Off Startup RYDES

February 11, 2021 / WIL BALDWIN

The Lufthansa Innovation Hub, the central digitalization unit of the Lufthansa Group, spins-off the startup RYDES. Forward31, the company builder of Porsche Digital, is contributing with its expertise and resources to the venture. Both Porsche and the Lufthansa Group are now strategic minority shareholders in the startup.

“The spin-off and subsequent funding from RYDES has been a great success. Once again, we are proving that startups from corporate digital units can adapt to market conditions. With Forward31, Porsche’s company builder, we have gained an important strategic partner that shares and further enhances our vision of a seamless mobility chain,” says Gleb Tritus, Managing Director Lufthansa Innovation Hub.

“The Lufthansa Innovation Hub is an authority on the development of new business models. Together with such a strong partner and the founding team, we look forward to continuing the successful development of RYDES in the future,” says Christian Knörle, Head of Company Building at Porsche Digital.

The aim of RYDES is to redefine and simplify access to modern mobility. For this purpose, the startup bundles existing mobility offers in one app and makes them accessible via the “Mobility Budget”. The new product allows companies to provide their employees with a monthly budget that they can use for various mobility services. These include car and bike sharing services, e-scooters, shared taxis, and public transport services. The different mobility providers are integrated into the RYDES app and users can use the app to book their trips and manage their budget. All journeys booked through RYDES are offset via the “Compensaid” platform and therefore CO₂ neutral.

One-stop shop for mobility as B2B offer

RYDES focuses on companies that want to offer mobility to their employees as an additional benefit. In this way, RYDES is also meeting the demand for mobility services that is emerging in the context of “new work” and the trend towards flexible and decentralized employment. RYDES’ first customer is the flex-office provider WeWork. Companies and freelancers who have a membership with WeWork can use the RYDES offer. WeWork will make the offer available as soon as possible under the relevant Corona guidelines.

The “Mobility Budget” will initially be available in German-speaking countries. In order to drive further growth as well as the startup’s internationalization, Martin Miodownik is expanding the founding team. Martin Miodownik’s who was employee number one at GetYourGuide later assumed the role of VP Global Sales. In this position, he was responsible for the global expansion of the Berlin-based unicorn.

RYDES was founded in 2018 as part of the Lufthansa Innovation Hub. The company’s initial business idea focused on developing a loyalty program that rewards people for using different mobility services. With the ‘Mobility Budget’, RYDES now goes one step further and combines the booking of services in one app, making travel much more convenient.