Airline Weekly Lounge Podcast cover image

Airline Weekly Lounge Podcast

The Lufthansa Problem

Mar 15, 2024
Exploring Lufthansa Group's financial performance and challenges, including comparisons with other European airlines. Delving into subsidiary struggles and strategies, like Austrian Airlines. Reviewing Euro Wings' success and joint venture with Sun Express. Insights from JP Morgan conference on US airlines and Boeing delays impact. Southwest's employee reduction plans and JetBlue's focus on fundamentals for improvement.
30:56

Podcast summary created with Snipd AI

Quick takeaways

  • Lufthansa Group's diverse operations contribute to a 7.6% operating margin, positioning them between Air France and IAG.
  • Lufthansa's struggling mainline carrier faces challenges like outdated aircraft decisions impacting half of their revenue.

Deep dives

Lufthansa Group's Earnings and Positioning in the Aviation Landscape

Lufthansa Group announced an operating margin of 7.6%, positioning them between Air France and IAG. This margin reflects their diverse operations including airlines, maintenance, cargo, and catering activities. Despite outperforming American Airlines, Lufthansa faces challenges due to fleet decisions and corporate-heavy operations.

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