LONDON — Members of the Board at the Lufthansa Group has this week approved the order of up to 16 additional aircraft in a meeting that took place on May 7th. With a list price of 2.1 billion euros, the deliveries of said aircraft are to take place in 2022, with the carrier’s investment plan for the 2018 fiscal year remaining unchanged.
As the order has taken place within the group, they will be dispatched amongst subsidiaries SWISS and Lufthansa Cargo. SWISS will receive two Boeing 777-300ERs which will be delivered in early 2020 and will be used to capitalize and grow on their long-haul route network as well as replacing their older A330 and A340 aircraft.
For Lufthansa Cargo, two Boeing 777F’s have been ordered, which will replace the aging MD-11F’s that they have been slowly phasing out.
Hot of the press – The Supervisory Board agrees on ordering 16 aircraft for #LHGroup: Two #B777-300ER for @FlySWISS, two #B777F for #LHCargo and twelve @Airbus #A320. @BoeingAirplanes https://t.co/2kEJp76Glw pic.twitter.com/DqEiV2ZLgf
— Lufthansa News (@lufthansaNews) May 7, 2018
These new aircraft will decrease fuel consumption, noise emissions and the group’s unit costs at the same time. SWISS and Lufthansa Cargo are to receive these new aircraft due to how well they have been doing financially.
The group traditionally receives a weak first quarter for every year, but SWISS had a profit margin of over nine percent, highlighting that the aircraft need to go to them on the passenger front to keep the growth in steady control. For Lufthansa Cargo, their margins were over 10 percent. The extra capacity will enable new routes and increased frequencies on popular cargo routes.
The board also announced that they approved the order of up to 12 A320-type aircraft, both short and medium-haul. Out of the 12 feature six new engine option aircraft that will be delivered in 2022, which were converted to fixed orders. They are to be dispatched across the entire group, so it is unclear to say at the moment which airlines in the group will be receiving the aircraft.
Depending on demand and availability, the group may be exercising their options of six additional A320 current engine option aircraft. These six CEOs will be delivered to mainline Lufthansa which will be used to offset delivery delays on A320neo aircraft they are currently receiving.