Lufthansa Announces Fleet Retirements

Lufthansa Group has published its second-quarter results for 2024. Revenues increased by 7% to 10 billion euros, and other positive net results were also reported.

The Group attributes this successful quarter to the continued diversification and, thus, growth of its route network, which equated to an expansion of 11%.

The quarter, however, did present its challenges as the Group continues to recover from earlier strike action and the rectifying of contracts with personnel that have increased operating costs.

Furthermore, Lufthansa Group has seen ticket prices normalise and yields decline across all traffic regions. The Group is now set to implement a turnaround plan to lower costs as it fights to become more sustainable in the long term.

One of the more fundamental elements of the comprehensive turnaround plan is the fleet review, which will aim to remove older, less efficient aircraft types.

Lufthansa says it’ll reduce the business to six long-haul aircraft types moving into the future and, as a result, decommission some existing Airbus and Boeing widebodies that have served the Group for so long.

As part of the decommissioning, Lufthansa announced that the A340-300, A340-600, and A330-200 produced by Airbus would be removed from the fleet. Meanwhile, on the Boeing side of things, the departure of 747-400s will also occur. These changes are to occur by 2028.

Lufthansa Group has been vocal about its efforts to stabilise the business in recent years. Additionally, it has remained clear that it has been forced to retain older aircraft because of supply chain difficulties leading to delivery delays.

The retention of older and, thus, less efficient aircraft comes as the airline looks to mitigate the overall operational impact but has been facing considerable financial impacts. The hope is that, with a stabilising supply chain in the future, the Group will be able to retire older planes as intended some time ago and fully transition to next-gen aircraft.

Other Changes To Come

Lufthansa Group has also unveiled other expected changes with the strategic upcoming expansion of Discover Airlines and Lufthansa City Airlines. This expansion is being organized to further develop the product at Frankfurt and Munich and ensure costs remain competitive.

Additionally, the Group wants to increase overall revenue by delivering on its promises of a high-end premium product. While this will present challenges and has its criticism for still not being up to standard, the Group is hopeful.

Lastly, to enhance the product, there’ll be a focus on optimising the route network to match seasonal demand levels, greater crew planning systems, and improved digitalisation of ground and air services.