It was a message nobody expected at that time when Lufthansa’s CEO, Carsten Spohr, announced the acquisition of ten new aircraft. Nevertheless, it was an interesting message when Lufthansa and most European airlines still have to ground a considerable portion of their fleet.
| Jul ’20 | Aug ’20 | Oct ’20 | Nov ’20 | Dec ’20 | Feb ’21 | Mar ’21 | |
|---|---|---|---|---|---|---|---|
| Asia Pacific | 22% | 22% | 21% | 20% | 20% | 21% | 21% |
| North America | 35% | 35% | 34% | 32% | 32% | 32% | 32% |
| Europe | 33% | 32% | 34% | 43% | 40% | 47% | 43% |
| Latin America | 44% | 38% | 34% | 31% | 28% | 27% | 29% |
| MEA | 41% | 39% | 37% | 36% | 35% | 33% | 31% |
B787-9 Delivery Already in 2021
And it became even more interesting when Mr. Spohr explained the timeline. Some of the newly acquired Boeing 787-9 aircraft are already planned for 2021’s winter schedule. The other 787-9 will follow in the first half of 2022. The extremely short timeframe shows that Lufthansa is taking advantage of other airlines’ postponement plans. Furthermore, the five Boeing 787-9 are already produced and contain an improved business class. Therefore, although no price details became public, one can assume that Lufthansa made an excellent deal.
Including the five additional 787-9, Lufthansa’s awaits 45 Boeing 787-9 and 777-9 until 2030.
| Aircraft Type | In-Service | Ordered |
|---|---|---|
| Boeing 747-400 | 8 | — |
| Boeing 747-8 | 19 | — |
| Boeing 777-9 | — | 20 |
| Boeing 787-9 | — | 25 |
| Total | 27 | 45 |
A350 to be delivered in 2027 and 2028
The additionally ordered A350 adds to a total of 45 A350 aircraft Lufthansa will receive until 2030. Moreover, Lufthansa has a total of 110 Airbus on its order book. At the moment, Lufthansa receives one new A320neo every month and will complete the fleet renewal until 2027.
| Aircraft Type | In-Service | Ordered |
|---|---|---|
| Airbus A319-100 | 23 | — |
| Airbus A320-200 | 60 | — |
| Airbus A320neo | 30 | 54 |
| Airbus A321-100 | 20 | 25 |
| Airbus A321-200 | 43 | — |
| Airbus A321neo | 9 | — |
| Airbus A330-300 | 15 | 31 |
| Airbus A340-300 | 17 | — |
| Airbus A350-900 | 17 | — |
| Total | 234 | 110 |
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Lufthansa Fleet Strategy: Downsizing & Modernizing
Lufthansa’s management once again underlined the latest acquisition of an additional 787-9 and A350 aircraft is entirely in line with its fleet restructuring plan. Both aircraft types will replace the Airbus A340. The 4-engine A340 currently accounts for 50% of Lufthansa’s long-haul flights. Based on the fleet renewal, Lufthansa plans to reduce the share down to 15% by 2025. Moreover, the modernization will positively impact operational costs with a reduction of 15%.
A Smart Move by Lufthansa — Buy When Others Are Fearful!
It seems that Lufthansa made a very smart move with the acquisition of additional Boeing 787-9 and Airbus A350. One of the explanations Mr. Spohr outlined with his statements was “anticyclical opportunities.” In the stock market, this strategy is called “buy when others are fearful.” The reason behind this is pretty simple: When demand is low, prices are too. Therefore, it seems to be a perfect time to invest in Lufthansa’s fleet renewal further.
Lufthansa’s Fleet Strategy — What do you Think?
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