Lufthansa Cargo reported (21-Mar-2013) declining demand in all major markets in 2012. Lufthansa Cargo CEO Karl Ulrich Garnadt attributed the airline's yearly profit to "flexible and demand-driven capacity management" which allowed the carrier to maintain high yields and profitability on its services. Lufthansa Cargo expects to receive the first two of five Boeing 777Fs on order in autumn 2013. Mr Garnadt said the efficiency of the new aircraft would improve the airline's competitiveness. The airline forecast a more positive trend in airfreight markets in 2013 and anticipated a recovery in demand by 2H2013 at the latest. The carrier plans to continue matching capacity to demand and predicted a small increase in capacity in 2013. Lufthansa Cargo expects to report a larger profit in 2013. [more - original PR]
Lufthansa Cargo attributes 2012 profit to capacity management, forecasts improvement in 2013
You may also be interested in the following articles...
Lufthansa cuts 1Q2016 operating loss, but mainly thanks to one-offs and fuel. Cost focus still key
The Lufthansa Group narrowed its operating loss in the seasonally weak 1Q2016, in spite of a fall in revenue. A weak pricing environment was more than offset by a reduction in unit costs. This was principally thanks to lower fuel costs, but there was also a welcome fall in underlying ex fuel CASK at constant currency.
However, although Lufthansa Passenger reported higher profits than in 1Q2015, there was a decline for SWISS, Eurowings, Cargo, MRO and Catering. For LCC Eurowings, this was partly due to start-up costs in long haul and at Vienna, but it also reflected strong LCC competition in Germany. Lufthansa is still considering whether to add Brussels Airlines to its Eurowings operation. Austrian only improved its result because of a one-off gain and, moreover, it seems that the improvement in operating profit at the Group level compared with 1Q2015 was due to one-off items.
Lufthansa still expects to post a slightly higher adjusted EBIT result in 2016 than in 2015. Nevertheless, its 1Q2016 report demonstrates that, for all its restructuring progress, it is not achieving results that are consistent with the broader cyclically high margins of the global airline industry. Further CASK reduction remains the focus.
Airberlin: airline's latest, more radical, restructuring gets help from TUIFly and Lufthansa
Airberlin's operations are to be split into three. First, there will be a core network airline with hubs in Berlin and Duesseldorf, deploying approximately half the current Air Berlin Group fleet. Second, there are plans for a new leisure airline, combining part of airberlin's fleet with TUIFly. Third, a significant part of airberlin's fleet will be wet-leased to the Lufthansa Group.
As a result of these moves the operating fleet of the core airberlin network airline will slip from second to third in Germany and risks becoming subscale. Eurowings will rise from third to second, and the expanded new TUIFly will go from fifth to fourth (overtaking Thomas Cook Group's Condor).
For several years airberlin has been unable to break the cycle of losses and successive restructuring initiatives, in spite of repeated bailouts from airberlin's 29% shareholder Etihad. A number of details are still to be clarified. These include the detailed route networks for the different operators, the network airline's strategy for feed, and the balance of charter versus scheduled flights in the new leisure airline. However, for now and with help from competitors and Etihad, airberlin looks to have ensured at least some kind of future.