Tag Archives: Airbus A321-231

Lufthansa reduces planned growth for 2019

Lufthansa Airbus A321-231 D-AISP (msn 3864) FRA (Marcelo F. De Biasi). Image: 944223.

Lufthansa Group issued this report:

Lufthansa Group achieved an Adjusted EBIT of EUR 2.4 billion for the first nine months of 2018 – a 7.7 percent decline on the prior-year period which is primarily attributable to the integration costs at Eurowings. Adjusted EBIT margin for the period amounted to 8.8 percent. Nine-month results were also burdened by a EUR 536 million rise in fuel costs, an increase in the costs incurred in connection with flight delays and cancellations, and higher maintenance expenses.

“We expect to see our full-year costs increase by more than EUR 1 billion in 2018 due to fuel costs and the extra expenses incurred from delays and cancellations alone,” says Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. “But despite this, we achieved an Adjusted EBIT of EUR 2.4 billion for the first three quarters of this year, the second-best nine-month result in our history. And had it not been for the losses at Eurowings, we would have posted another record earnings result. This is a clear testament to our sustainable financial strength – a strength that we have demonstrated even under challenging conditions this year.”

Lufthansa Group generated total revenues of EUR 26.9 billion in the first nine months of 2018. Total revenues increased by 6 percent on the prior-year period, while traffic revenues were up 7 percent. As a result of the first-time adoption of the new IFRS 15 accounting standard, the reported growth of total revenues to EUR 26.9 billion was only 0.5 percent, while the reported traffic revenues declined by 1 percent to EUR 21.1 billion.

Unit costs for the period remained stable excluding fuel and currency effects, despite the extraordinary expense. Unit revenues excluding currency effects increased 0.3 percent. The airlines of Lufthansa Group transported some 108.5 million passengers in the first three quarters of 2018, a new record volume. Nine-month seat load factor was also at a record high of 82 percent. The exceptionally strong capacity growth for the period, which was driven by the insolvency of Air Berlin, will be substantially lower in 2019.

“Future growth in the air transport sector will need to pay far more regard to the capacities of the infrastructure in the air and on the ground,” Carsten Spohr observes. “At the same time, we aim to secure the profitability of our airlines through capacity discipline. We also expect the substantial rises in fuel costs to lead to higher ticket prices from 2019 at the latest.”

According to current market expectations, airlines in Germany are likely to expand their capacities by over 10 percent for the 2018/19 winter timetable period, a development that is still being driven by the demise of Air Berlin. The airlines of Lufthansa Group, however, will raise their capacity by a more modest 8 percent, and will further reduce their capacity growth to 3.8 percent for the 2019 summer timetable period.

Balance sheet further strengthened

Free cash flow for the period declined 59 percent to EUR 1.2 billion. The reduction is largely attributable to a 57-percent increase in net investments, which rose to EUR 2.6 billion. Most of this spending – EUR 2.2 billion – was on aircraft and reserve engines. Pension provisions for the period declined 6.2 percent to EUR 4.8 billion, owing partly to the increase in the discount rate from 2.0 to 2.1 percent. Net financial debt declined 14 percent from its 2017 year-end level to EUR 2.5 billion. The debt ratio (adjusted net debt in relation to Adjusted EBITDA) was reduced accordingly, declining 0.2 points to 1.5.

Network Airlines

The Network Airlines – Lufthansa, Swiss and Austrian Airlines – further improved on their record earnings of 2017, raising their aggregate nine-month Adjusted EBIT by another EUR 13 million to just under EUR 2 billion. The driver behind this development was Swiss, which achieved an outstanding nine-month Adjusted EBIT of EUR 525 million, 18.8 percent above its prior-year level. Swiss remains the Group’s most profitable airline, with an Adjusted EBIT margin of 14.3 percent. Lufthansa’s nine-month Adjusted EBIT of EUR 1.3 billion was 4.2 per cent down on the prior-year period, while Austrian Airlines’ EUR 92 million represents a 14-per-cent decline.

Eurowings 

Eurowings reports an Adjusted EBIT of EUR -65 million for the first nine months of 2018. The EUR 210 million decline on the prior-year period is attributable in particular to a non-recurring expense of EUR 170 million for completing the integration of parts of the former Air Berlin, and to additional costs incurred as a result of flight delays and cancellations.

“In 2017 we seized a historic opportunity in the consolidation of Europe’s aviation sector,” comments Carsten Spohr. “And it was the right decision to do so in strategic terms, even if this has given Eurowings a very challenging 2018. We view the one-off costs of integrating these operations and of our rapid expansion as a long-term investment that will help sustainably strengthen our market position.”

Aviation Services

Buoyed by strong demand and continuing high yields at Lufthansa Cargo, the Group’s Logistics business segment raised its nine-month Adjusted EBIT 56.1 percent to EUR 153 million. The LSG Group also posted a much-improved Adjusted EBIT for the period of EUR 99 million, a 50-percent increase that was especially achieved through lower transformation costs. Nine-month Adjusted EBIT at Lufthansa Technik declined 3.3 percent to EUR 322 million, owing mainly to rises in the costs of spares and greater use of external maintenance capacities.

Outlook

Lufthansa confirms its full-year earnings projection for 2018. With originally-planned capacity for the winter timetable period now slightly reduced, total annual capacity is expected to be around 8 percent above 2017. The Group still expects to post a slight increase in unit revenues for the year as a whole. The reduction in unit costs excluding fuel and currency effects is expected to be around 1 percent, despite the negative impact of integration costs at Eurowings. Fuel costs are projected to be around EUR 850 million higher than in 2017.

The Group expects to report a slightly lower annual Adjusted EBIT for its Aviation Services segment. This is related to a more negative result at Other Businesses & Group Functions, owing to an absence of the currency gains reported here in 2017. All in all, Lufthansa Group continues to predict an Adjusted EBIT for 2018 that is slightly below the record level seen last year.

“We have achieved solid earnings for the first nine months of this year, and are still on course for our second-best-ever annual EBIT result,” confirms Ulrik Svensson, Chief Financial Officer of Deutsche Lufthansa AG. “So our earnings projections for 2018 as a whole remain unchanged at slightly below previous year.”

On a like-for-like basis, excluding volume growth, Lufthansa Group expects its fuel costs to rise by a further EUR 900 million in 2019.

Top Copyright Photo: Lufthansa Airbus A321-231 D-AISP (msn 3864) FRA (Marcelo F. De Biasi). Image: 944223.

Lufthansa aircraft slide show:

x

Advertisements

German team takes off for the World Cup in Russia with the Fanhansa “Mannschaftsflieger”

Lufthansa has made this announcement:

The German National team took off for the World Cup aboard Lufthansa special flight LH2018 on June 12.The “Mannschaftsflieger”, which is christened with the city name “Lindau”, took off from Frankfurt Airport at 1 p.m. heading for the World Cup in Russia. On board were 122 passengers and nine crew members, including the national players, trainers and team coaches. The flight time from Frankfurt (FRA) to Vnukovo Airport (VKO), some 2,000 kilometres away, is three hours and five minutes.

Lufthansa Technik was responsible for attaching the “Mannschatsflieger” livery on the Airbus A321 with the identification D-AISQ (above and below) for this special occasion. In addition, the, well-known Fanhansa logo from the World Cup in 2014 is also on the fuselage of the aircraft. The welcome panels next to the first two doors on the left side are signed by the players of the German National team. Spiriant, a LSG subsidiary has embroidered the headrest of the seats with the names of the players, which will remain on board during the duration of the World Cup. So those who fly with the “Sierra Quebec” in the coming weeks will have the chance to sit in the seats of players like Neuer, Hummels, Kroos, Müller und Co.

"Fanhansa - Mannschaftsflieger" for World Cup 2018 Russia

Above Copyright Photo: Lufthansa – Fanhansa Airbus A321-231 D-AISQ (msn 3936) FRA (Bernhard Ross). Image: 942398.

Culinary delights include meals and snacks specially prepared to meet the athletes’ dietary preferences. For this flight, LSG Sky Chefs, the catering specialist of the Lufthansa Group, created a four-course menu especially for the German Team: Spiced salmon topped with Frankfurt’s “7 herb pesto”, celery salad and Oyster mushrooms awaits the team as an appetizer. For the main course, they can choose between a Poulard breast with grilled vegetables, a cod fillet with curry-mustard crust or an Asian, vegetarian vegetable curry with basmati rice. Finally, a selection of cheese and white chocolate mousse with mango puree will be served. As healthy snack alternatives, cranberry almond, cocoa or vanilla bars will be available on this flight.

Lufthansa Group offers additional flights to Russia for the World Cup
The Lufthansa Group is offering 85 additional flights to and from Russia for the World Cup. This means that football fans have 18,000 more seats than usual to travel to the tournament and support their team. Lufthansa is increasing its range of flights from Frankfurt from four to up to six, in Munich from two to up to four daily connections to Moscow (Domodedovo). Between Frankfurt and Moscow, an Airbus A330 will also operate once a day except Fridays from  June 1 to July 31.

Follow the World Cup on board of Lufthansa
During the tournament, passengers on Lufthansa long-haul flights will be able to watch World Cup matches via the live TV channels on the screen in their seats as well as on their personal device (via FlyNet connection).

Photo: Lufthansa.

Air Astana launches a new route to Frankfurt

Now with "Expo 2017 - Astana Kazakhstan" sub-titles

Air Astana launched a new nonstop flight between Atyrau and Frankfurt on March 26, 2018.

The new service will be operated twice a week on Mondays and Fridays using Airbus A321 aircraft in a two-class layout with 28 Business Class and 151 Economy Class seats. The flight time from Atyrau to Frankfurt (KC947) is 5h 05min, with the return flight (KC948) time being marginally shorter at 4h 45min.

The new Atyrau–Frankfurt route will be operated under a codeshare agreement with Lufthansa, marking an extension of the cooperation between Air Astana and the German flag carrier.

Since March 2017, when the codeshare Agreement was initially launched on the route between Astana and Frankfurt, Air Astana have operated flights into Terminal 1 at Frankfurt, easing connectivity and transfer times between the two airlines.

Atyrau–Frankfurt is the third direct service offered by Air Astana between Frankfurt and Kazakhstan, complementing the existing daily services from Astana and weekly service from Uralsk. The carrier offers an additional seven connections between Almaty and Frankfurt through its codeshare agreement on Lufthansa operated services.

Copyright Photo: Air Astana Airbus A321-231 P4-KDB (msn 5404) (Expo 2017 – Astana Kazakhstan) AMS (Ton Jochems). Image: 930848.

Air Astana aircraft slide show:

SKYCOP urges Monarch Airlines to cover passenger compensations with slot deal money

Monarch Airlines Airbus A321-231 G-OJEG (msn 1015) LGW (SPA). Image: 929961.

SKYCOP issued this statement concerning Monarch Airlines and IAG:

After the biggest UK airline collapse in years just a month ago, the administrator of the bankrupt Monarch Airlines has struck a deal with IAG over slots at Gatwick Airport, valued by experts at over €68 million. The sale has sparked an outrage among the passengers left stranded or without holidays by the airline collapse, majority of who are yet to receive any flight compensation, which according to SKYCOP should total to a whopping €291 million.

After a favorable decision by the court, the administrator of the bust Monarch Airlines, KPMG, has signed a sales deal with International Airlines Group (IAG), owner of the UKs flag carrier British Airways over airport slots at Gatwick International Airport. According to experts, this deal fulfils the long-standing British Airways’ goal of expanding its presence at one of the major European aviation hubs, however, KPMG has not yet reported of where the estimated €68 million will go as far as handling the debts of Monarch Airlines.

According to Giedrius Kolesnikovas, a partner of a law firm Motieka & Audzevicius, the best practice of bankruptcy administration shows that first and foremost, the administrator should settle the debts with airline employees and the deceived passengers, only then switching to the creditors, suppliers, etc.

“The recently signed contract goes to show that the administrator can and is doing everything in its power to gather some capital. The question is whether it will be used wisely – the recent report on the case showed over €533 million debt to unsecured creditors. However, employees and stranded passengers are yet to be compensated for their moral and physical struggle and have been waiting patiently, even though the size of debt totals to millions of euros. Thus if the money won’t go their way, it might spark a large lawsuit, giving even more of a headache to the administrator,” explains G. Kolesnikovas.

Since Monarch Airlines has gone bankrupt, the flight disruption and the compensation process is handled not in accordance to the renowned EU 261 law. If it was, it would mean each and every of the approx. 860 thousand passengers would be entitled to travel compensation reaching up to €600. Nevertheless, flight compensation company SKYCOP has already contacted the administrator as well as UK’s CAA in order to ensure that the IAG deal money goes straight to compensating the passengers.

“According to the administrator, almost 2000 of Monarch Airlines’ redundant employees are due to receive 100% of the money they are owed, which is great. However, hundreds of thousands of passengers have been seemingly pushed aside after they were rescued from abroad by the UK authorities,” says Marius Stonkus, the CEO of flight claim company SKYCOP. “According to our estimates, if the EU law would apply in this case, the passengers would be receiving over €291 million. This would be at least something positive to try and make up for all of the stress, panic and moral struggle these poor travelers have been through.”

The CEO of SKYCOP has also shared that the company is continuously monitoring the situation and is considering the possibility of filling a group lawsuit representing thousands of passengers still without any compensation for flight cancellations.

Copyright Photo: Monarch Airlines Airbus A321-231 G-OJEG (msn 1015) LGW (SPA). Image: 929961.

Mihin Lanka ends all operations

Mihin Lanka ends all operations

Mihin Lanka (Colombo), as planned, operated its last scheduled passenger flight on October 29, 2016. As of October 30, 2016 all Mihin Lanka destinations are now being handled by SriLankan Airlines.

Mihin Lanka was the low-fare leisure airline.. The airline commenced operations on April 24, 2007 and operated scheduled flights from its hub at Bandaranaike International Airport to a number of cities in the Indian subcontinent, the Arab states in the Persian Gulf, Southeast Asia, and Eastern Africa.

Copyright Photo: Mihin Lanka Airbus A321-231 4R-MRC (msn 3106) SNN (Malcolm Nason). Image: 905831.

ag-airline-aircraft-slide-show

ag-2400-galleries

Spirit to serve Newark from Fort Lauderdale/Hollywood, Orlando and Myrtle Beach

Spirit to serve Newark from Fort Lauderdale/Hollywood, Orlando and Myrtle Beach

Spirit Airlines commencing on October 30, 2016 will serve Newark Liberty International Airport with daily service to both Fort Lauderdale/Hollywood and Orlando with mainly Airbus A321 aircraft.

Additionally the carrier will add the Newark – Myrtle Beach route with daily flights starting on March 9, 2017 according to Airline Route.

Copyright Photo: Spirit Airlines Airbus A321-231 WL N660NK (msn 6804) FLL (Brian McDonough). Image: 931986.

AG Aircraft Color Prints 6.4.11

 

American takes delivery of the first Alabama-built Airbus A321

American takes delivery of the first Alabama-built Airbus A321

Copyright Photo: American Airlines Airbus A321-231 WL N105NN (msn 5904) LAX (Michael B. Ing). Image: 925666.

The first delivery of an A321 aircraft (N162AA) from the Airbus U.S. Manufacturing Facility to American Airlines took place on May 17, in Mobile, Alabama. On hand for the occasion were executives from Airbus and American Airlines and representatives of the more than 350 employees at the facility.

Airbus announced its commitment to build a single-aisle assembly line in Mobile, Alabama in 2012, and less than one year later, broke ground on the $600 million facility. The ceremonial inauguration of the plant took place in September 2015. The aircraft delivered today, an American Airlines A321, successfully had its first flight on April 19, 2016.

Airbus anticipates delivering four aircraft per month from the Mobile plant by the end of 2017. The initial deliveries will all be A320 Family aircraft with the Current Engine Option (CEO), but will begin transitioning to New Engine Option (NEO) derivatives in late 2017.

AG Prints-Lustre-Glossy-Matte-Metallic