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 Intercontinental 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. ย 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 โJumboโ 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.ย ย 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.
Top Copyright Photo: Lufthansa Boeing 747-8 D-ABYA (msn 37827) FRA (Marcelo F. De Biasi). Image: 944222.
As of summer 2018, Lufthansa Group passengers will be able to book a so-called Economy โLightโ fare on routes to North America served by Lufthansa, Swiss, Brussels Airlines and Austrian Airlines.
As the basic rate, the new fare is the least expensive option for price-conscious passengers only travelling with carry-on luggage and who do not require any ticket flexibility. For an additional fee, passengers will be allowed to add one piece of luggage or request a seat reservation on an individual basis. Meals and drinks will continue to be served to passengers on board free of charge.
Lufthansa has been testing a Light fare since October 2017 on selected routes between Scandinavia and North America. Passengers can buy a basic rate with carry-on luggage on flights between Sweden, Denmark, Norway and selected North American destinations.
In 2015, the Lufthansa Group Airlines introduced a Light fare on their European routes. The various air fare options mainly differ with respect to the free baggage allowance, seat reservations as well as the possibilities to cancel or rebook flights. Standard features of all fares include the flight, carry-on luggage weighing up to 8 kg, a snack and drinks on board, a fixed seat assignment at check-in as well as bonus and status miles.
Copyright Photo:ย Lufthansa Boeing 747-830 D-ABYA (msn 37827) (Team D) IAD (Brian McDonough). Image: 941203.
The Verdi trade union called for a strike at Frankfurt, Munich, Cologne and Bremen airports on Tuesday, April 10, 2018. The ground handling services, the support services and also part of the airport fire brigade will be on strike between 5:00h and 18:00h. Due to this Verdi strike, Lufthansa is canceling 800 out of the 1,600 scheduled flights, including 58 long-haul flights on April 10. The cancellations will affect about 90,000 passengers. Flight operations are scheduled to resume normal services on Wednesday, April 11, 2018.
On inner-German routes, passengers can use the train, regardless of whether their flight has been cancelled. To do so, passengers can convert their ticket into a Deutsche Bahn ticket at โMy Bookingsโ on Lufthansa.com. It is not necessary to travel to the airport.
The airline continued;
Lufthansa cannot comprehend Verdiโs threat to carry out such a massive strike. “It is completely unacceptable for the union to impose this conflict on uninvolved passengers. Lufthansa is not a part of this collective bargaining conflict, but unfortunately our customers and our company are being affected by the consequences of this dispute,” says Bettina Volkens, Member of the Executive Board for Human Resources and Legal Affairs of Deutsche Lufthansa AG.
The nature and extent of the widespread and full-day strike is inappropriate and unreasonable at this time. Strikes must be the last resort in a wage dispute. “Politicians and legislators must define clear rules for strikes and industrial actions,” demands Volkens. “We regret that the travel plans of so many customers are being affected by this Verdi strike and we are working on minimizing the impact as much as possible”.
Copyright Photo:ย Lufthansa Boeing 747-830 D-ABYA (msn 37827) FRA (Marcelo F. De Bisi). Image: 940915.
Adjusted EBIT increased around 70 percent to some EUR 3 billion
Adjusted EBIT margin raised 2.9 percentage points to 8.4 percent
Earnings growth primarily driven by the Groupโs airlines (including cargo)
Revenues up 12.4 percent to EUR 35.6 billion
Unit costs further reduced
60 percent higher dividend proposed at EUR 0.80 per share
Outlook for 2018
Stable unit revenue development expected
Unit costs to be further reduced by 1 to 2 percent
Higher fuel costs of some EUR 700 million expected to be largely compensated by improved operating performance
Adjusted EBIT for the year expected to be only slightly below its record in 2017
The Group continues;
โOur endeavors of the past few years are paying off. Our modernization has a sustainable impact. We have achieved the best result in the history of our company. 2017 was a very good year for our customers, our employees and our shareholders,โ says Carsten Spohr, Chairman of the Executive Board & CEO of Deutsche Lufthansa AG. โLast year we were able to reduce costs again, while at the same time becoming the first โ and the only โ airline in Europe to be awarded a five-star rating. We are lowering our costs where this does not affect the customer, and are simultaneously further investing in our product and service quality.โ
Total revenues for the Lufthansa Group in 2017 amounted to EUR 35.6 billion, a 12.4 percent increase on the previous year. The Adjusted EBIT of EUR 2.97 billion was a significant 69.7 percent year-on-year improvement. And the 8.4 percent Adjusted EBIT margin was up 2.9 percentage points compared to previous year. EBIT for the year increased more than EUR 1 billion to EUR 3.3 billion. The strong increase of EBIT includes the positive EUR 582 million one-off effect from agreeing on the collective labor agreement with the Vereinigung Cockpit union for the pilots of Lufthansa, Lufthansa Cargo and Germanwings, which was recognized in the income statement in December.
โWe are particularly pleased that we were again able to lower our passenger airlinesโ unit costs excluding fuel and currency factors last year. This is in particular as passenger related costs were actually up due to higher load factors, the variable remuneration was higher in light of strong result development, and additional costs because of compensation paid for the flight cancellations at Air Berlin burdened our cost as well,โ adds Ulrik Svensson, Chief Financial Officer of Deutsche Lufthansa AG. โExcluding these one-off effects, we reduced our unit costs by 1.8 percent.โ
The Lufthansa Group invested some EUR 3 billion in 2017, around a third more than in the previous year. This is partly due to investments of some EUR 900 million into aircraft from the Air Berlin flight operations. โThese higher investments also reflect the increased size of our Group. But investments relative to revenue remain on one level with the worldโs most successful airlinesโ,โ comments Ulrik Svensson. โImportant is that the return on capital continues to increase. In 2017, our Adjusted ROCE (after tax) improved by 4.6 percentage points to 11.6 percent.โ
Despite the higher capital expenditure, free cash flow almost doubled in 2017 to EUR 2.3 billion. Net financial debt rose 6.8 percent to EUR 2.9 billion. This figure includes an initial EUR 1.7 billion funding for the new defined contributions model of the flight attendantsโ pension fund. Total pension provisions decreased by EUR 3.2 billion in 2017. The year-end equity ratio stood at 26.5 percent, an increase of 5.9 percentage points.
โOn the basis of these very good results, we propose a dividend of EUR 0.80 per share to the Annual General Meeting,โ says Ulrik Svensson. โThis is a 60 percent increase of the pay-out compared to last year. This is the minimum level of dividend payment that we aim to maintain in the coming years.โ
Network Airlines
The Groupโs Network Airlines โ Lufthansa, SWISS and Austrian Airlines โ increased their Adjusted EBIT by nearly 50 percent to some EUR 2.3 billion. With strong demand and a positive pricing environment, the Network Airlines raised their EBIT margin 2.6 percentage points to almost ten percent.
Point-to-Point Airlinesย
Despite the significant expenses in the context of acquiring capacities from Air Berlin, Eurowings reduced its unit costs excluding fuel and currency factors by 6.5 percent. On the back of this and strong market demand, Adjusted EBIT increased by some EUR 200 million. Despite adverse one-off factors related to market consolidation, the Groupโs Point-to-Point Airlines improved their Adjusted EBIT margin by 7.3 percentage points and achieved a positive Adjusted EBIT of around EUR 100 million. The inorganic growth after the insolvency of Air Berlin will make a positive contribution to the Point-to-Point Airlinesโ from 2019 onwards.
Aviation Services
The Groupโs Aviation Services in total achieved a very good result, though the development among the business segments was quite different. A combination of cost reductions and strong demand helped Lufthansa Cargo to improve its Adjusted EBIT by almost EUR 300 million to EUR 242 million. The EUR 415 million earnings of Lufthansa Technik were broadly in line with prior-year levels. Against the background of the continuing transformation of its European operations, the LSG Group sustained a EUR 38ย million decline in its earnings for the year to EUR 66ย million.
Outlook
EUR 700 million higher fuel costs can be largely offset by an improved operating performance, so that for 2018 in total an Adjusted EBIT only slightly below previous year is expected. Organic capacity is expected to increase by some seven percent, as unit revenues excluding currency factors should remain broadly stable. Unit costs excluding fuel and currency factors should be further reduced by 1 to 2 percent.
โWe will continue to consistently pursue our modernization,โ concludes Carsten Spohr. โAnd in doing so, we will retain our clear focus on reducing our costs and at the same time raising our quality. This is the only way to sustainably increase our profitability. From a position of strength, we will continue to drive consolidation in Europe.โ
Copyright Photo:ย Lufthansa Boeing 747-830 D-ABYA (msn 37827) (Team D) IAD (Brian McDonough). Image: 941203.
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