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Lufthansa Looks to U.S. Support Amid Delivery Delays
The German airline group Lufthansa is expressing optimism that the new U.S. administration will assist Boeing in resolving ongoing challenges that have resulted in widespread delivery delays across the aviation industry. CEO Carsten Spohr conveyed this sentiment during an interview with CNBC’s Annette Weisbach on Thursday.
Spohr indicated that 2025 could be a pivotal year for Lufthansa, as the airline anticipates receiving aircraft that it has been waiting to acquire for an extended period. In the financial results released on the same day, Lufthansa reported a 39% decline in year-over-year earnings before interest and taxes (EBIT), totaling 1.645 billion euros ($1.78 billion). This decrease was attributed to delayed aircraft deliveries, labor strikes, and rising global costs. However, the earnings surpassed analysts’ predictions, leading to a 13% increase in shares early in the trading day, although this gain was slightly adjusted later.
Spohr noted that there are currently 41 twin-aisle aircraft pending delivery in the U.S. alone, with nearly all of the over 240 jets ordered for future years facing some form of delay. He elaborated on the situation, stating, “Delays stem from either supply chain disruptions within aircraft production or certification issues, particularly involving Boeing and the Federal Aviation Administration in the U.S.”
Expressing hope for resolution, Spohr mentioned, “We are optimistic that these issues can be addressed, potentially with support from the new U.S. administration, allowing us to operate the most modern fleet. This would benefit both our passengers and shareholders due to reduced operational costs.”
The shortage of new aircraft and the necessity of keeping older models operational have led to increased fuel costs and challenges with on-time performance within the Lufthansa Group, which encompasses the flagship airline Lufthansa, along with its subsidiaries like Eurowings, Austrian Airlines, Brussels Airlines, ITA Airways, and Swiss International Air Lines.
On the other hand, Airbus, Boeing’s European competitor, is similarly facing supply chain difficulties that have been affecting airlines globally. Additionally, Boeing is under intensified regulatory scrutiny due to various safety incidents, including two fatal crashes and an in-flight door issue, alongside accusations regarding safety compromises.
A Growing Transatlantic Relationship
Despite the hurdles, Spohr expressed confidence in Lufthansa’s ability to achieve significantly higher profits in 2025, mainly driven by the robust global demand for air travel. He observed that while corporate travel demands have partially rebounded since the lifting of pandemic-related restrictions, leisure travel has emerged as a major growth factor, even on business and premium economy routes.
Spohr also highlighted the significance of North Atlantic travel for Lufthansa’s long-haul network, noting that, despite current political discussions, including the potential for U.S. tariffs on the European Union and tensions between former President Donald Trump and Europe regarding trade and the Ukraine conflict, demand in both directions remains strong. “The transatlantic relationship is not only intact; it is expanding,” he asserted, adding that there has not yet been a negative impact under Trump’s policies, with heightened booking levels observed from both the U.S. and Europe.
“Although tariffs could hinder global trade, we hope they can be avoided, and my optimism stems from the substantial transatlantic travel demand that we are currently experiencing,” he said.
Further boosting the airline’s outlook, Spohr pointed to potentially increased fiscal spending in Germany, a possibility that arises from recent agreements among German political parties to explore reforms to the nation’s longstanding debt regulations. Recognized by many as a crucial shift for the ailing economy, Spohr noted, “Any stimulus that fosters growth in the German economy will positively influence our business.”
Concluding on a positive note, he expressed his belief in the necessity for large European companies to invest in and support the German economy. “The broad political spectrum is realizing that our way of life cannot be sustained without a healthy economy, and we, as significant European enterprises, must do our part in driving investment in Germany,” he emphasized.
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