Lufthansa Predicts a Slowdown in US Business Come Third Quarter
US business growth for Lufthansa anticipated to plateau following a robust summer period.
Hop aboard for a candid chat about Lufthansa's flight business projections! The German airline giant expects a dip in its US flight business come fall, following a triumphant summer. As CEO Carsten Spohr shared during a chat with the Economic Journalistic Association Düsseldorf (WPV) last Thursday, the airline's looking at fewer passengers traversing the North Atlantic this autumn compared to previous years. But don't worry, sun-soaked summer tourists won't be feeling the chill just yet!
With Lufthansa Group flying a whopping 60 times a day to the US, there's no shortage of sky-high adventure. And while the first quarter saw a positive uptick compared to last year, Spohr predicts a decrease in the third quarter, with the slowdown more noticeable for flights departing from Germany. Travel from the US, however, remains strong and more lucrative, prompting Lufthansa to up the ante on marketing more seats on its U.S routes. After all, the North Atlantic business is the bread and butter for passenger airlines, which includes Lufthansa, Austrian Airlines, Brussels Airlines, Swiss, and now, ITA Airways.
The implementation of its turnaround program, initiated two years ago, is proceeding as planned, according to Spohr. The goal remains a gross result effect of 1.5 billion euros by 2026 and 2.5 billion euros by 2028 - not just cutting costs, but also investing in better long-haul seats to fetch higher ticket prices.
In the meantime, Lufthansa is holding off on new aircraft orders, with no plans to announce at next week's Paris Air Show. The airline's currently knee-deep in its largest modernization program ever, and Spohr admitted that they're already pushing the budget envelope with 250 ordered aircraft.
But what's causing the anticipated third-quarter slowdown? It's a complex interplay of factors, including seasonal fluctuations, geopolitical uncertainties, fierce market competition, partnerships, and economic conditions. While it's anybody's guess which of these factors will have the biggest impact, one thing's for certain: Lufthansa's here to rock the skies - come what may!
[1] Competitive dynamics in the airline industry[2] Seasonal fluctuations in travel demand[3] Economic growth and consumer spending[4] Impact of geopolitical headwinds on travel[5] Strategic partnerships and collaborations between airlines
- The slowdown in Lufthansa's US business during the third quarter could be attributed to a combination of factors including competitive dynamics in the airline industry, seasonal fluctuations in travel demand, and economic growth and consumer spending.
- Despite the predicted decrease in passengers traversing the North Atlantic in the third quarter, Lufthansa continues to focus on enhancing the passenger experience by investing in better long-haul seats to cater to its customers' lifestyles, which might include leisure travel or business trips, and potentially influence their overall travel decisions.
