Lufthansa Sees Germanwings Improvement as Revamp Costs Mount
Deutsche Lufthansa AG (LHA),
Europe’s second-largest airline, said losses at the Germanwings discount unit will shrink this year while costs for upgrading cabins and lounges will top 500 million euros ($682 million) through 2015.
The operating loss at Germanwings will be reduced by 90 million euros as the unit starts to take over short-haul routes outside Lufthansa’s hubs in Frankfurt and Munich, according to a presentation on Lufthansa’s website. The company will brief investors on progress at the business in
London tomorrow.
Eliminating losses in European point-to-point traffic is among the most important tasks of the so-called Score program that seeks to lift Lufthansa’s operating profit to 2.3 billion euros by 2015. The company has ordered planes worth 23 billion euros at list prices this year in order to regain ground lost to low-cost and Gulf carriers that operate younger fleets.
Project costs, which include installing new business class seats on long-haul planes, upgrading lounges and introducing a premium-economy service next year, will amount to 120 million euros this year and about 300 million euros next, before declining to below 100 million euros in 2015, Lufthansa said.
At Lufthansa’s mainline business, capacity, the number of seats times the distance flown, will rise about 1 percent this year and jump 5 percent next as the company adds bigger planes and scraps its first class offering on some jets. Capacity will rise 4 percent in 2015 and about 3 percent in 2016, it said.
Germanwings expects demand to rise by 5 percent this year, while the
load factor, a measure of occupancy, should improve by 2.9 percentage points and the yield by 4.5 percent, it said.
Lufthansa shares have declined 0.8 percent this year, while
Air France-KLM (AF) Group, Europe’s biggest airline, has added 6 percent and British Airways parent IAG SA, the No. 3, has surged 85 percent.
http://www.bloomberg.com/news/2013-...nwings-improvement-as-revamp-costs-mount.html
p.s. Sarebbe interessante se qualcuno riuscisse a postare la presentazione che ha fatto Lufthansa sul proprio sito, visto che non sono riuscito a trovarla