Lufthansa Group anticipate flying 95pc of their 2019 capacity in 2024, with increased service to certain destinations and a recovery in corporate travel volumes.
This would bring Lufthansa back to 128m passengers a year, placed second in Europe but well behind Ryanair’s latest rolling annual of 183m.
Lufthansa Group CEO Carsten Spohr stated that the booking outlook for the fourth quarter is positive and there is little risk of overcapacity in Europe due to supply-side bottlenecks, including aircraft delays and engine issues.
Lufthansa is in talks with European competition authorities regarding its takeover of ITA Airways and potential divestitures of airport slots or gates to secure approval. It is also being speculated that TAP will be acquired in the near to middle term, once privatisation issues have been settled with the Portuguese government. The two potential acquisitions will bring Lufthansa annual passenger numbers beyond 150m but still short of Ryanair by a margin.
The group’s new subsidiary, Lufthansa City, aims to add seats at a lower cost by operating planes with more seats than the existing regional subsidiary, Lufthansa Cityline. Union negotiations for the new subsidiary have yet to begin.
The group reported a strong summer demand and improved financial performance during the September quarter, with a €1.5bn adjusted operating profit and a 14.3pc adjusted operating margin.
Unit revenues for the group increased by 2.7pc year-over-year and 21.2pc compared to 2019, while unit costs excluding fuel decreased by nearly 1pc compared to last summer.
Lufthansa plans to introduce new onboard products, including first class, business class, and premium economy offerings, on long-haul flights next summer.
