Lufthansa (FRA:LHA)

QUOTE AND NEWS
Flightglobal  12 hrs ago  Comment 
Lufthansa Group carrier Austrian Airlines is modifying its livery and intends initially to show off the adapted scheme on a Boeing 777-200ER.
Channel News Asia  Apr 16  Comment 
MILAN: Lufthansa emerged as the number one candidate to take over Alitalia on Monday (Apr 16) after an Italian government minister called the German airline's bid the "most promising". The Italian government has been looking for new investors in...
Flightglobal  Apr 13  Comment 
Lufthansa Technik and Diehl Aviation intend to intensify their co-operation and jointly provide cabin equipment and modifications, particularly for the retrofit market.
Flightglobal  Apr 13  Comment 
Colombia's Avianca is proposing to negotiate a joint business venture with Star Alliance partner Lufthansa similar to the arrangement under discussion with United Airlines.
Flightglobal  Apr 12  Comment 
Lufthansa Group has chosen Geven s Essenza seat for new Airbus A320neo/A321neo aircraft, joining the fleets of its hub airlines Austrian Airlines, Lufthansa and Swiss from the first quarter of 2019. The first delivery will be an A320neo to Swiss.
The Economic Times  Apr 12  Comment 
Sources said the foreign carriers are in talks with Indian business houses to meet the criterion of “substantial ownership and control”.
Flightglobal  Apr 11  Comment 
Lufthansa Group will by year-end complete a review of options for integrating Brussels Airlines and Eurowings.
Flightglobal  Apr 11  Comment 
Lufthansa and EasyJet are among three parties to have submitted a renewed bid for Italian flag carrier Alitalia.
Financial Times  Apr 10  Comment 
The airport strike does not pose a real threat to the airline, a longer dispute will
BBC News  Apr 10  Comment 
Lufthansa and Air France services are cancelled amid strike action, hitting thousands of passengers.




 

Deutsche Lufthansa AG (FRA:LHA) is a German airline with five business segments: scheduled passenger air traffic, scheduled airfreight services, maintenance, repair and overhaul (MRO), information technology, and catering.

Lufthansa operates the following airlines: Deutsche Lufthansa AG, Lufthansa CityLine GmbH, Swiss International Airlines AG, Austrian Airlines AG, British Midland Ltd., Air Dolomiti S.p.A., Eurowings Luftverkehrs AG, and Germanwings GmbH.

Business Growth

Lufthansa's operating profit came to €876 million in 2010, more than five times higher than in 2009. Lufthansa's net profit for 2010 was €1.1 billion.[1] Lufthansa's sharp increase in profitability is due to the combination of strong sales in international passenger traffic and cargo and cost-cutting measures.

Trends and Forces

Rising German exports help Lufthansa's logistics business

Lufthansa logistics and cargo segment benefited from the global economic recovery and the recovery of German exports. Lufthansa's logistics business segment reported an increase in revenue of 43% to €2.795 billion in 2010.

German exports surged in March 2011 to the highest monthly value ever recorded.[2] Exports jumped 7.3 percent from February 2011, when they gained 2.8 percent. Exports were worth €98.3 billion ($141.4 billion) in March.[2]

Germany’s economic recovery is broadening as companies boost investment and hiring to meet booming export demand from Asia.[2] The recovering German economies is boosting demand for Lufthansa's cargo services, which allow exporters to ship freight by air.

German air travel tax cuts into Lufthansa's revenues

The German government has levied a €1 billion ($1.3 billion) per year tax on the air travel industry in Germany as part of a package of budget cuts and taxes.[3] The air travel tax is expected to raise airfares by €8-16 per ticket. German airports body ADV has predicted that air traffic in Germany could drop by as much as 3% as passengers seek cheaper tickets in France, Belgium, Poland, and Germany's other neighbors.[3] Lufthansa's CEO has said that the entire tax cannot be passed onto the consumer, which has increased its costs while also reducing its revenues due to the increase in airfares.

Competition

Lufthansa competes with both European airlines that offer many flights throughout continental Europe, such as Air France ADS (AKH), as well as with international airlines outside of Europe offering flights to Germany, such as American Airlines (AMR) and Delta Air Lines Inc. (DAL).

References

  1. Lufthansa Annual Report 2010
  2. 2.0 2.1 2.2 Bloomberg: "German Exports Surged to Record $141.4 Billion in March, Boosting Growth" May 9, 2011
  3. 3.0 3.1 Reuters: "German air travel tax overshadows IATA meeting" June 8, 2010
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