Tag Archives: 737-330

Lufthansa Group improves its financial results for the first half of 2015

Lufthansa Group (Lufthansa) (Frankfurt) today issued this financial report for the first half of 2015. The group produced a profit of €954 million ($1.0 billion) for the first six months of 2015, compared to a loss of €79 million ($86.3 million) in the same period a year ago. Here is the group’s report:

Lufthansa Group logo

The Lufthansa Group reports solid business development for the first half of 2015 and improved results in all of its operating segments. The Adjusted EBIT (Earnings Before Interest and Tax) rose by EUR 290 million year-on-year to EUR 468 million. For the six months ended June 30, sales increased by 8.5 percent to EUR 15.4 billion, with traffic revenue accounting for EUR 12.1 billion of that figure.

Yields for the Lufthansa Group’s passenger airlines rose by 2.4 percent in the first half of 2015, which was mainly exchange rate related. Had it not been for the tailwind from a weaker euro, however, yields would have been appreciably lower, in line with expectations.

In the second quarter alone, yields declined by 5.7 percent after adjusting for exchange rate effects. Although unit costs as a whole also rose mainly as a result of currency exchange rates, the EUR 309 million reduction in fuel costs coupled with improved sales and capacity utilization more than compensated for the reduction in prices. All currency effects in the first six months net to a total negative impact of EUR 158 million. The net effect is negative as Lufthansa Group has higher costs in foreign currencies, among others due to fuel spending in US Dollar, compared to the revenue side in foreign currencies.

The Group’s net result for the first six months of the year rose to EUR 954 million, compared with a net loss of EUR 79 million for the same period in the prior year. In addition to a higher operating result, this is mainly due to the increase in the financial result. More than half of the Group’s net result was attributable to an accounting effect resulting from the appreciation in equity capital of EUR 503 million following the redemption of the jetBlue convertible bond in the first quarter. In the second quarter, assessments of interest and exchange rate hedging instruments as well as fuel hedging options had a positive impact, increasing the result by a total of EUR 176 million.

Simone Menne, Chairman of the Financial and Aviation services of Deutsche Lufthansa AG said:

“Our first-half results are solid. Aside from the positive development of our business operating areas and, in particular, our passenger airlines, which gained extra momentum in the second quarter, the fall in fuel costs is largely responsible for the improvement in our results. We will, however, not be misled by that, since we assume that the price level for airline tickets will not recover. We will therefore continue to work consistently on the competitive focus of the Lufthansa Group.”

Swiss new logo

In the second quarter, the Lufthansa Group achieved an Adjusted EBIT margin of 7.6 percent. Lufthansa Passenger Airlines and, in particular, Swiss played a crucial role in this positive development. The Passenger Airline Group recorded a margin of almost 8 percent in the second quarter, with Swiss, with a margin of over 11 percent, posting an exceptionally good result – also in comparison to others in the sector.

 

 

Germanwings (2nd) (13) logo

Germanwings also remains on a successful course, and will close the current year in profit for the first time.

Simone Menne:

“Our strategic focus is right. On the one hand, our premium brands – Lufthansa and Swiss – are very successful, and at the same time Germanwings and Eurowings are also showing good business developments as secondary brands. We are focusing on the premium quality of our hub airlines and the high level of competitiveness of our secondary brands in point-to-point traffic. This approach makes us profitable and fit for the future within the airline market”.

In the first half year, Lufthansa Passenger Airlines improved its result by EUR 181 million, Swiss by EUR 90 million, based on an Adjusted EBIT of EUR 178 million.

Austrian (2015) logo

 

While Austrian Airlines reported a loss of EUR 17 million in the first half-year, it managed to increase the Adjusted EBIT by a solid EUR 27m compared with the previous year.

Lufthansa Cargo logo

 

However, in the second quarter, Lufthansa Cargo was unable to maintain its good performance of the first quarter. With the introduction of the summer timetable, Lufthansa Cargo’s competitors significantly increased their freight capacity in many markets, thereby placing prices under increasing pressure. Eventually, the logistics segment achieved an improvement of EUR 7 million in the Adjusted EBIT to EUR 50 million in the first half-year.

The other business segments also managed to improve their half-year results:

Lufthansa Technik by EUR 41 million to EUR 268 million and LSG SkyChefs by EUR 17 million to EUR 26 million.

The equity ratio rose again to 17.5 percent at the end of the second quarter due to the higher actuarial interest rate and the resultant decrease in pension provisions. The ratio was therewith higher than for the full-year 2014. Although pension liabilities declined as a result of the 2.9 percent increase in the actuarial interest rate, at EUR 6.6bn overall pension liabilities still remain at a very high level.

Simone Menne: “With regard to pension liabilities and equity, it can also be said that developments throughout the second quarter have been positive, even if they were strongly driven by external factors. The need for sustainable structures in our pension scheme and transitional pension arrangements remains unchanged, nevertheless. The ambitious investment program to which we are committed to in the coming years is part of our strategy to ensure our sustainability. In order to generate the necessary funds we need the right conditions in all the business areas and companies within the Lufthansa Group.”

In the first half, operating cash-flow rose by almost 45 percent to EUR 2.5bn. At the end of the first half-year, a free cash flow of just over EUR 1bn was reported – almost double that of the previous year. Against this background, net indebtedness decreased substantially by 31 percent compared to the full-year 2014.

As planned, capital expenditure rose year-on-year. Amongst other things, the delivery of two further Airbus A380s and four Boeing 747-8s as well as the modernization of First and Business Class on the long-haul fleet and the installation of the new Premium Economy Class were contributory factors. Gross expenditure in 2015 will total EUR 2.9 billion. For the following years, a decline in the level of investment to EUR 2.5 billion is planned.

Lufthansa confirms its outlook for the full-year 2015 with an Adjusted EBIT of more than EUR 1.5 million before strike costs.

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Lufthansa is approaching the retirement of its remaining Boeing 737 fleet (Boeing 737-300s and 737-500s). The Classic 737 is likely to be retired by the end of the year depending on schedule demand although this remains fluid. Boeing 737-330 D-ABXL (msn 23531) taxies at Zurich.

Lufthansa aircraft slide show: AG Airline Slide Show

AG Full screen views

Lufthansa is hit again by another round of strikes by its pilots

Lufthansa (Frankfurt) is being impacted today (March 18) by another round of strikes by its pilots, represented by the Vereinigung Cockpit (VC). Today’s strike is affecting short and medium-haul flights in Europe. The pilots have also called for another strike tomorrow, this time affecting its long-haul flights.

The airline has been plagued by strikes by its pilots.

The airline issued this statement:

The pilots’ union Vereinigung Cockpit (VC) has announced strike action on March 18, 2015, affecting short and medium haul flights operated by Lufthansa. All Lufthansa long haul operations are scheduled to operate as normal. Also not affected by the strike are flights operated by Germanwings, Eurowings, Air Dolomiti; Swiss, Brussels Airlines and Austrian Airlines. Lufthansa Cityline will also remain largely unaffected by the industrial action.

Despite the strike, the Lufthansa Group will continue to operate the majority of the 3000 daily scheduled flights and passengers will be offered flight alternatives via rebooking.

The pilots’ union Vereinigung Cockpit have announced strike action for March 19, 2015, affecting Lufthansa long haul flights. Short haul flights will not be affected.

A special flight schedule will be published early afternoon on March 18, 2015.

Passengers are kindly requested to check the status of their flight prior to departure.

Read the full report by the BBC: CLICK HERE

Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Still going strong. The pictured Boeing 737-330 registered as D-ABEC (msn 25149) is named “Karlsruhe”. D-ABEC is pictured arriving at Zurich and was delivered on December 27, 1967. Lufthansa is planning to retire its remaining Boeing 737-300s and 737-500s this year.

Lufthansa aircraft slide show: AG Airline Slide Show

AG Thank you

Aloha Air Cargo adds two Boeing 737-300 freighters

Aloha Air Cargo 737-300F N301KH (08)(Blessing)(AAC)(LRW)

Aloha Air Cargo (Honolulu) has announced the initiation of its fleet replacement plan with the purchase of two former Lufthansa Boeing 737-300SF all cargo converted aircraft. The first 737-300 (737-330 N301KH, msn 27904) was delivered on June 2, 2014 and recently entered operations with the second plane (737-330 N302KH, msn 27905) currently in its initial maintenance check, and scheduled to be delivered to Honolulu during the third quarter of this year – enhancing the carrier’s fleet mix to two Boeing 737-300s, two Boeing 737-200s, and three SAAB 340A turboprops.

The Boeing 737-300 boasts nine full cargo positions totaling upwards of 39,000 lbs of payload capacity; that is two positions and nearly 10,000 lbs more than its sister aircraft, the Boeing 737-200 that Aloha currently flies. With ETOPS (Extended Range Twin Operations) capability, more fuel efficient and quieter engines, and a greatly reduced environmental footprint, the airframe is superior in every way.

“Our current fleet of four Boeing 737-200 aircraft has served Aloha and our predecessor very well over the last several decades, but timing is key to begin transitioning to a newer airframe,” said Pat Rosa, Chief Operating Officer for Aloha Air Cargo. “We are excited to invest in the future of our company and its employees by adding the 737-300s to our fleet. With this addition, Aloha Air Cargo will continue to build upon its 30 year history for providing safe and reliable cargo services to our communities in Hawaii and beyond.”

Aloha Air Cargo delivers fast, economical and reliable transport of goods between the Hawaiian Islands of Oahu, Maui, Kauai and the Island of Hawaii. It became an independent cargo operator after the closure of Aloha Airlines passenger services in May 2008. Aloha Tech Ops is a division of Aloha Air Cargo and provides maintenance and engineering services to airlines in the State of Hawaii.

Aloha Air Cargo is owned by Seattle-based Saltchuk, which has been doing business in Hawaii since 2000 when it acquired Young Brothers/Hawaiian Tug & Barge. Committed to the welfare of Hawaii and strengthening the local economy, the company also acquired Hawaii Fuel Network, Maui Petroleum and Minit Stop Stores in 2006.

Copyright Photos: Aloha Air Cargo. Kahu Kordell Kekoa blessing the plane’s name: Kū Ha’aheo (meaning “to stand tall with unselfish pride”).

Aloha Air Cargo 737-300F N301KH (08)(Grd) HNL (AAC)(LRW)

Aloha Air Cargo: AG Slide Show

Aloha Air Cargo logo copy

Current Route Map:

Aloha Air Cargo 6.2014 Route Map

Unite gives its BA strike report but is willing for more talks

Copyright Photo: Antony J. Best. The BA strike has brought some unusual traffic to LHR. It is ironic that LCC Jet2's Boeing 737-330 G-CELK (msn 23530) with its "Friendly Low Fares" sub-titles would be flying a BA flight.

British Airways (London) endured a three-day Unite cabin crew strike this past weekend. BA has hired in a lot of aircraft from other carriers with their crews to operate some of the BA flights. The following aircraft are known to have been leased in the past three days:

SE-RHU, G-CELY, G-CGET, G-OJIB, G-CELK, G-STRP, PH-AHY, G-CELB,

G-POWD, PH-HZE, G-LSAG, CS-TFT, G-LSAA, G-ZAPX, CS-TLO, PH-HZD,

PH-HZK, CS-TLX, G-BPEJ, and G-STRW.

Yesterday union leaders called for renewed talks with the company to end the strike according to Reuters.

Read the full report:

www.reuters.com/article/idCNLDE62K09B20100321?rpc=44

Meanwhile while the company tried to remain positive, the union issued this report detailing the devastating affects of the strike:

“With 80 percent of cabin crew standing strong on the first day of the BA stoppage, Unite has issued an update of how the strike is biting so far, which reveals that BA’s much-vaunted contingencies plans are failing :

   - BA has managed to fly only one third of its normal scheduled
      departures;

    - BA's flagship terminal T5 is a ghost town as passengers stay away;

    - The first long haul BA flight out (10am) was to Abu Dhabi and crewed by
      6 pilots and 2 international cabin crew;

    - From 12.20pm until 2.30pm only 10 flights departed from Heathrow,
      normally there would be 50 during the same period; of the 10 which left,
      8 flights were chartered and only 2 were BA flights;

    - By lunchtime today, 85 BA planes were parked at Heathrow - consuming
      the maximum parking space allowed for BA aircraft;

    - 20 more planes had been moved to Cardiff to be parked, and a further 20
      flown to Shannon, in western Ireland, to sit out the strike;

    - By 2pm, only one flight to JFK airport had departed - normally there
      are five;

    - At Gatwick, one third of flights have failed to take off;

    - BA planes are taking off empty, save for cargo, as BA stretches
      efforts to make it seem it is functioning;

    - On average only 14 passengers are travelling on those flights which are
      taking off, far short of capacity;

    - Two strike-breaking chartered flights did not depart because of technical
      problems;

    - By mid-morning around 113 BA passengers had complained about the
      poor quality of food on-board the flights; and

    - There are reports of no food on in-bound flights from Germany and
      Italy."