Tag Archives: Lufthansa Cargo

Eight million protective masks arrived in Munich on Lufthansa Cargo

  • Cargo aircraft carrying a total of 26 tons of protective equipment from Shanghai
  • Bavarian Minister-President Dr. Markus Söder, German Federal Minister of Transport Andreas Scheuer and Lufthansa Group CEO Carsten Spohr welcome the aircraft upon arrival

A Lufthansa Cargo aircraft carrying eight million protective masks on board landed in Munich, late Tuesday afternoon. The Boeing 777F, named “Olá Brazil”, departed Shanghai earlier this morning and after a brief stopover in the South Korean capital Seoul, the aircraft continued its flight to Munich, where it landed punctually at 5:50 pm.

The aircraft was welcomed personally by the Bavarian Minister-President Dr. Markus Söder, the German Federal Minister of Transport Andreas Scheuer and the Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, Carsten Spohr.

The eight million masks were packed in 4,000 cartons, weighing 26 tons all together. The shipment was transported by Lufthansa Cargo on behalf of the Bavarian State Government in cooperation with the logistics company Fiege.

“The cooperation with Bavaria and partners such as Lufthansa for the rapid procurement of the protective equipment is excellent. All procedures are perfectly coordinated. Whether it is logistics, assignments, decisions, reliability – it all fits together,” said Federal Transport Minister Andreas Scheuer.

“Especially now, cargo flights are of utmost importance for medical facilities but also for craftsmen and large corporations. We are doing everything we can to maintain supply chains during this crisis and ensure that people receive sufficient supplies. This is an important part of our corporate responsibility as a leading European aviation group,” said Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG.

At present, all 17 Lufthansa Cargo freighters are continuously operating to transport urgently needed goods, such as medical supplies, around the world and to Germany. In addition to the regular cargo flights, this week there will be 25 special flights with Lufthansa passenger aircraft, which will be used solely as freighters. A further 60 cargo flights with passenger aircraft are planned for next week.

Lufthansa Group achieves adjusted EBIT of 2 billion euros in a difficult economic environment

Lufthansa Group issued this statement:

  • Outlook 2020: magnitude of the expected decline in adjusted EBIT currently not predictable 
  • Corona crisis: Comprehensive savings measures throughout the Group including: far-reaching capacity reductions, ”short-time working” mechanism in home markets and suspension of dividend 
  • Flight schedule for relief flights until 19 April
  • In addition over 140 special flights planned and operated until now
  • Executive Board waives 20 percent of basic remuneration

Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG:

“The spread of the coronavirus has placed the entire global economy and our company as well in an unprecedented state of emergency. At present, no one can foresee the consequences. We have to counter this extraordinary situation with drastic and sometimes painful measures. At the same time, we must live up to the special responsibility that airlines bear in their home countries. We are doing everything we can to bring as many passengers as possible home on relief flights. In addition, we are doing our utmost to help ensure that supply chains for many thousands of businesses do not break down by mobilising additional capacity for air freight transport. The longer this crisis lasts, the more likely it is that the future of aviation cannot be guaranteed without state aid. In view of the massive impact of the Corona crisis, today’s publication of our results for the past financial year is unfortunately sidelined.”

The most important key figures of the 2019 annual financial statements have already been reported in an ad hoc announcement on 13 March.

At 2.0 billion euros, the adjusted EBIT of the Lufthansa Group was in line with the forecast despite considerable charges. The main drivers for the decline were a 600 million euro increase in fuel costs and a noticeable economic slowdown, especially in the Group’s home markets. Earnings development was also impacted by high price pressure in the European market due to overcapacity and the weakening of the global airfreight market. Lufthansa Group revenue in 2019 rose by 2.5 per cent to 36.4 billion euros (previous year: 35.5 billion euros). The adjusted EBIT margin was 5.6 per cent (previous year: 8.0 per cent). Consolidated net profit fell by 44 per cent to 1.2 billion euros (previous year: 2.2 billion euros).

Unit revenues of the passenger airlines in the Group fell by 2.5 per cent in 2019, adjusted for exchange rate effects, in particular due to the overcapacity in the Lufthansa Group’s home markets. At the same time, unit costs adjusted for fuel and currency effects were reduced by 1.5 per cent in 2019, the fourth year in succession.

In 2019, the Lufthansa Group invested 3.6 billion euros (previous year: 3.8 billion euros), a large part of which in new aircraft. Adjusted free cash flow fell to 203 million euros (previous year: 288 million euros) due to lower profits and higher tax payments. Return on capital employed (adjusted ROCE) after taxes decreased to 6.6 percent (prior year: 10.8 percent).

At year-end, interest-bearing net liabilities amounted to 4.3 billion euros. Including lease liabilities of 2.4 billion euros recognized for the first time as a result of the application of IFRS 16, net debt thus amounted to around 6.7 billion euros (prior year: 3.5 billion euros). Pension liabilities rose by 14 percent to 6.7 billion euros (previous year: 5.9 billion euros), mainly due to the lower interest rate used to discount pension obligations, which fell to 1.4 percent (previous year: 2.0 percent).

In order to secure its strong financial position, the Lufthansa Group has raised additional funds of around 600 million euros in recent weeks. In actuarial terms, the Group thus has liquidity of around 4.3 billion euros. In addition, there are unused credit lines of around 800 million euros. Further funds are currently being raised. Among other things, the Lufthansa Group will use aircraft financing for this purpose.

“The Lufthansa Group is financially well equipped to cope with an extraordinary crisis situation such as the current one. We own 86 per cent of the Group’s fleet, which is largely unencumbered and has a book value of around 10 billion euros. In addition, we have decided to propose to the Annual General Meeting that the dividend payment be suspended, and we are proposing short-time working in our home markets,” said Ulrik Svensson, Chief Financial Officer of Deutsche Lufthansa AG.

The Lufthansa Executive Board also decided yesterday to waive 20 per cent of its basic remuneration in 2020.

Corona crisis: Drastic cuts in Lufthansa Group flight operations / numerous special relief flights planned and carried out

Due to entry restrictions in many countries and a collapse in demand, the Lufthansa Group was forced to make drastic cutbacks in its flight operations. Air Dolomiti conducted its last flight for the time being on 18 March. Today the last regular scheduled flight of Austrian Airlines landed in Vienna. With the exception of special flights, Austrian Airlines is suspending its flight operations until 28 March. Brussels Airlines will not be offering any regular flights in the period from 21 March to 19 April. 

Lufthansa is discontinuing its long-haul operations in Munich and will initially only offer long-haul flights from Frankfurt. Swiss will offer only three weekly long-haul flights a week to Newark (USA) in addition to a substantially reduced short- and medium-haul schedule. Lufthansa’s short-haul program will also be substantially reduced further, and only Lufthansa CityLine services will be operated from Munich. From the hubs in Frankfurt, Munich and Zurich, only a few European metropolitan areas will be served. The relief flight schedule runs until April 19 and only provides for a total of about five percent of the originally planned program. Around 700 of the Lufthansa Group’s 763 aircraft will be temporarily parked.

In order to bring as many people as possible back home quickly, Lufthansa Group airlines are also operating numerous special relief flights around the world. This is also possible due to the unparalleled support and solidarity of the crews as well as ground staff, who at a moment’s notice volunteered their assistance.

In close consultation with the governments of their home countries and on behalf of tour operators, Lufthansa Group airlines are currently offering around 140 special relief flights. More than 20,000 passengers are thus flying home with Lufthansa, Eurowings, SWISS, Austrian Airlines, Brussels Airlines and Edelweiss. The figures alone include the special flights that were firmly planned until yesterday. Numerous other special flights will follow in the next few days.

In addition, the Lufthansa Group is making every effort to ensure that supply chains in Germany and Europe do not come to a standstill. Lufthansa Cargo continues to fly its regular program, except for cancellations to mainland China, keeping the entire freighter fleet in the air. This currently consists of seven Boeing 777Fs, six MD-11Fs and four 777Fs from Aerologic. In addition, the company is currently examining the possibility of using passenger aircraft without passengers as pure cargo aircraft in order to further increase cargo capacity.

Lufthansa Cargo aircraft photo gallery:

Lufthansa Cargo to accelerate the retirement of its MD-11Fs

Lufthansa Cargo McDonnell Douglas MD-11F D-ALCB (msn 48782) FRA (Marcelo F. De Biasi). Image: 943189.

Lufthansa Cargo will significantly accelerate the modernization of its fleet by purchasing two more brand-new Boeing 777F freighters. Lufthansa Group and Supervisory Board have approved the corresponding investments. The aircraft will be delivered by the manufacturer in 2020 and be based in Frankfurt.

The ten older MD-11 freighters, which have already been partially replaced by Boeing 777F this year, are expected to be withdrawn from the fleet by the end of 2020.

Due to the higher cargo capacity and range, the same freight performance can be achieved in the future with noticeably fewer aircraft movements. Overall, Lufthansa Cargo’s customers will have the same freighter capacity at their disposal at the end of the rollover as they had at the beginning when eighteen MD-11Fs were in operation for Lufthansa’s cargo arm. In addition to its own fleet, Lufthansa Cargo can also utilize the cargo capacity of four Boeing 777Fs operated by AeroLogic.

Lufthansa Cargo first put the eye-catching MD-11F three-jet aircraft into operation in 1998 because of its efficiency advantages. It replaced the four-engine jumbo freighters until 2005. The twin-engine Boeing 777F is now around 20 percent more efficient and emits less CO2 than the MD-11F. In addition, the new model meets the strict noise protection requirements of ICAO Annex 16, Volume I, Chapter 14.

In addition to its own fleet, Lufthansa Cargo also markets the belly hold capacities of Lufthansa German Airlines, Austrian Airlines, Brussels Airlines, Eurowings and SunExpress. In total, around half of the cargo is carried in passenger aircraft’s belly holds.

Top Copyright Photo: Lufthansa Cargo McDonnell Douglas MD-11F D-ALCB (msn 48782) FRA (Marcelo F. De Biasi). Image: 943189.

Lufthansa Cargo aircraft slide show:

Lufthansa Cargo to introduce a new BMW logo jet

Lufthansa has made this announcement on social media:

LH Cargo B777F “Foxtrot Echo” (D-ALFE) departs on a trip around the world in a few days with a unique branding. Its freight? The #VisioniNext by @BMW, the future of automotive design. Let us know if you spot it on the way from @MUC_Airport to JFK, SFO and PEK.

Top Image: Lufthansa Cargo.

Below Copyright Photos: Lufthansa Cargo Boeing 777-FBT D-ALFE (msn 41678) (BMW Vision Next) MUC (Arnd Wolf). Image: 943477.

Lufthansa Cargo's 2018 "BMW Vision Next" promotional livery

Lufthansa Cargo aircraft slide show:

Video:

Lufthansa Group orders 16 additional aircraft

Lufthansa Cargo Boeing 777-FBT D-ALFE (msn 41678) YYZ (TMK Photography). Image: 938090.

The Supervisory Board of Deutsche Lufthansa AG has approved the order of up to 16 additional aircraft. The list price of the aircraft is approximately 2.1 billion euros. Delivery is scheduled to take place in stages until 2022. The investment plan for the 2018 fiscal year remains unchanged.

The order includes two Boeing 777-300ER long-haul aircraft for Swiss.

Photo: Lufthansa Group.

An additional two Boeing 777F freighters (top) will be ordered for Lufthansa Cargo. The modern freighter aircraft will replace MD-11 cargo planes in the future.

The Supervisory Board has also approved the order of up to twelve short- and medium-haul A320-type aircraft. This includes six delivery options for aircraft of the Airbus A320neo (new engine option) type in 2022 that were converted to fixed orders. When they are delivered, they will replace older aircraft in the flight operations of the Lufthansa Group. Depending on availability, up to six additional A320ceo (current engine option) will be ordered. The plan is to deploy them at Lufthansa this year already, in order to offset delivery delays for Airbus A320neo aircraft.

Top Copyright Photo: Lufthansa Cargo Boeing 777-FBT D-ALFE (msn 41678) YYZ (TMK Photography). Image: 938090.

Lufthansa Cargo aircraft slide show:

Lufthansa Cargo increases freighter services to Japan with new service to Osaka

Lufthansa Cargo Boeing 777-FBT D-ALFB (msn 41675) JFK (Ken Petersen). Image: 925187.

Lufthansa Cargo has increased its freighter services to Japan and added two weekly freighters to Osaka, Japan (KIX). The additional flights complement the already existing daily freighter from and to Tokyo-Narita as well as the Lufthansa passenger flights to Osaka-Kansai, Tokyo-Haneda, and Nagoya.

The new route is operated from Frankfurt via Novosibirsk to Osaka on Wednesdays and Fridays, and adds to a total of 80 weekly flights into and out of the country – including the belly capacity on Lufthansa passenger aircraft and the carriers cooperation capacity with ANA Cargo. The first flight from Osaka took off on  January 18 at 11:36 pm (local time) with 90 tons of cargo on board.

Copyright Photo: Lufthansa Cargo Boeing 777-FBT D-ALFB (msn 41675) JFK (Ken Petersen). Image: 925187.

Lufthansa Cargo aircraft slide show:

Lufthansa to operate around one half of its long-haul flights today due to the pilots’ strike

Lufthansa (Frankfurt) has issued this statement:

Lufthansa logo-2

Lufthansa has published a special timetable for its services for Tuesday, September 8.

The action has been taken following a call by the Vereinigung Cockpit pilots’ union (VC) for its members at Lufthansa German Airlines and Lufthansa Cargo to take strike action.

A total of 1,500 passenger flights (including some 170 long-haul services) and seven cargo flights were scheduled to be operated during the planned strike period today.

With a relatively large number of cockpit personnel indicating their willingness to fly, the airline will be able to operate more than half of its intercontinental passenger services despite the VC’s strike call.

All in all, 84 long-haul services from or to Frankfurt, Munich or Düsseldorf will have to be cancelled, while 90 such flights can be operated.

The willingness of many pilots to work despite the strike call will also permit all seven scheduled cargo flights for Tuesday to be performed. Lufthansa Cargo will thus be able to maintain its full flight program.

All Lufthansa customers holding tickets for long-haul travel from or to Frankfurt, Munich or Düsseldorf are urged to check the latest status of their flight on LH.com well in advance of their scheduled departure.

Copyright Photo: Javier Rodriguez/AirlinersGallery.com. Airbus A380-841 D-AIMK (msn 146) arrives at the Frankfurt hub.

Lufthansa aircraft slide show: AG Airline Slide Show

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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

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Lufthansa Cargo to bring home the remains of the victims of Germanwings flight 4U9525

Lufthansa Group (Frankfurt) tomorrow (June 9) will operate a special Lufthansa Cargo (Frankfurt) McDonnell Douglas MD-11F flight from Marseille to Dusseldorf which will bring home the remains of the victims of Germanwings (Cologne/Bonn) ill-fate flight 4U9525 which crashed in the French Alps. Transfer of the remains to the victim’s families will occur on June 10. Lufthansa Cargo will operate more flights in the coming weeks until the end of June. The group issued this statement:

Lufthansa Group logo

Lufthansa is working with all its available resources to ensure the repatriation and transfer of victims of the Germanwings flight 4U9525 to the relatives in the originally planned schedule. To start off the repatriation flights, Lufthansa will arrange at short notice a special flight with a MD-11 of Lufthansa Cargo from Marseille to Dusseldorf. The plane will take off from Marseille on June 9 at 20:50 and is expected at Dusseldorf at 22:30. There will be 30 coffins of the victims of flight 4U9525 on board.

The repatriation of the victims was initially scheduled for next week. At short notice, however, a delay had resulted due to regulatory requirements. The Federal Government Commissioner for the victims’ relatives had then turned immediately to the authorities and received assurances that preparations for repatriation could be made immediately.

After this first special flight to Dusseldorf, the other victims will be gradually transferred to their home countries in the coming weeks. The French authorities are working hard in order to create the formal conditions for the transfer of the victims as soon as possible. Lufthansa is in close contact with the relatives to ensure that the transfer of the victims is carried out according to the relatives’ wishes.

Germanwings black logo

Copyright Photo: Pascal Simon/AirlinersGallery.com. McDonnell Douglas MD-11F D-ALCM (msn 48805) departs from the Frankfurt cargo hub.

Lufthansa Cargo aircraft slide show: AG Airline Slide Show

Lufthansa Group reports a first quarter profit of €425 million ($474 million)

The Lufthansa Group (Frankfurt) reported a net profit of €425 million ($474 million) for the first quarter. Here is the full report:

Lufthansa Group logo

The Lufthansa Group has reported a positive course of business for the first quarter of 2015. At total revenue of nearly 8 per cent higher, the EBIT and adjusted EBIT both rose by EUR 73m. Both key performance indicators were thus 30 per cent higher than in the previous year. The Group closed the first quarter with an adjusted EBIT of EUR -167 m (previous year: EUR -240 m).

Simone Menne, Chief Officer Finance and Aviation Services of Deutsche Lufthansa AG, says: “All operating business segments were able to increase their results in the first quarter. Above all, Swiss International Air Lines (Zurich) and Lufthansa Cargo (Frankfurt) have done better than in the previous year. But Lufthansa German Airlines has also shown a positive development, although it was worse hit by strikes and other one-off effects than in the previous year.”

The Group result rose significantly more strongly than the adjusted EBIT in the reporting period. With a plus of EUR 677 m in comparison with the same quarter in the previous year, the Lufthansa Group achieved a consolidated result of EUR 425 m. An extraordinary effect from the premature exchange of JetBlue swaps made a significant contribution to this development. This transaction alone improved the financial result without an effect on equity by EUR 503m.

The result was once again overshadowed by the consequences of the strike called by the trade union Cockpit among the pilots of Lufthansa German Airlines, Lufthansa Cargo and Germanwings on a total of six days between January and March 2015. Flight cancellations caused by strikes led to a burden on the result of EUR 42m. Due to weaker advance bookings in the following quarters as a consequence of the strike, Lufthansa expects a further burden on the result of EUR 58m.

Cash flows, which are important in view of high total investments, developed positively in the reporting period. Cash flow from operating activities rose to EUR 1,394m (previous year: EUR 855m), the free cash flow improved to EUR 532m (previous year: EUR 195m).

The actuarial interest rate for valuing pension obligations declined further in the first three months of the year, in Germany from 2.6 per cent to 1.7 per cent now. Thus the arithmetic pension burden rose by EUR 3.4bn. This was contrasted with a growth in pension assets of around EUR 500m. The equity ratio fell by 5.7 percentage points to 7.5 per cent now.

“This development shows once again how volatile the key figure ‘equity ratio’ has become since the introduction of the new IFRS accounting standards. We are not alone in this situation. However, other groups have already made the necessary structural change from a cover oriented to a contributions oriented pension commitment. Here, more urgently than ever, we need sustainably financeable solutions in place of obsolete structures. We can only achieve this together with our collective bargaining partners,” says Simone Menne.

Operating costs and income showed strong fluctuations in comparison with the same quarter in the previous year. What was decisive here was the significantly lower oil price, the continuing weakness of the euro and low interest rates. Fuel costs were EUR 209m lower than in the same quarter in the previous year, while expenses on fees went up by nearly 7 per cent, despite the lower number of flights and passengers. The weak euro and the rise in pension expenses also led to an increase in staff costs of nearly 7 per cent.

Simone Menne summarised the interim report for the first three months of the year: “We see positive developments in the result and in cash flow. This shows we are on the right course. At the same time, we continue to see great pressure to act. The enormous pension burdens are putting considerable pressure on our equity. And we cannot accept the continuing increase in fees or the development of our unit costs. Great efforts remain to be made here in order to strengthen the international competitiveness of all the business segments of the Lufthansa Group.”

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Swiss and Lufthansa Cargo did better than in the same quarter than the previous year. The aging Swiss Airbus A340-300s will be replaced with the new Boeing 777-300 ERs on order. A340-313 HB-JMK (msn 169) taxies at the Zurich hub.

Swiss aircraft slide show: AG Airline Slide Show

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