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Lufthansa CEO aims to revive 'problem child' airline by 2026

Lufthansa is aiming to restore its core airline company by 2026 as one of Europe's top providers struggles more than its local competitors with higher expenses and prolonged delays in Boeing aircraft deliveries, its chief executive said.

Carsten Spohr described the Lufthansa airline company as the German group's issue kid and said turning it around is a should for the larger business's success.

( It's) a clear objective that the Lufthansa airline will once again be our flagship for its 100th birthday in 2026, he informed reporters at an instruction late on Monday.

The comment comes as financiers stress about the group's. third-quarter outcomes due on Oct. 29, with its shares down 10%. over the last 6 months.

Lufthansa, which likewise counts Austrian Airline companies, Swiss and. Eurowings amongst its providers, has actually currently provided 2 revenue. warnings this year, as spiralling wage expenses, a capture on. ticket costs and a hard air travel market produce a challenging. healing.

The delayed delivery of much-needed new jets is compounding. ongoing issues, Spohr said, including that Lufthansa had been hit. disproportionately hard.

We were simply captured at exactly the wrong time, just (when. it came to) the fleet modernisation, Spohr said.

Lufthansa is still awaiting 41 new Boeing aircrafts to. show up, with the 777x jets on order currently facing years-long. hold-ups.

That has forced the airline to keep using the older Airplane. planes the group had wanted to retire before the. pandemic, Spohr stated, harming its capability to expand services on. successful paths and enhance effectiveness as more recent planes use less. jet fuel.

We're flying 23 aircraft that we didn't wish to fly. any longer, he stated.

Other European airline companies, consisting of Ryanair, have. likewise been hurt by Boeing's long delivery delays.

FINANCIAL STABILITY

One method to revive Lufthansa's fortunes is to purchase. further worldwide development, Spohr said, including its stake in. Italian carrier ITA Airways.

Lufthansa has actually had problem with competition on its. transatlantic and Asian routes, recently cancelling its. Frankfurt to Beijing flights as Chinese carriers increased. capability.

The nation's airlines have actually been gaining market share on. global routes as foreign airline companies are hindered by weak. Chinese travel need, increasing costs and extended flight times as. they avoid Russian airspace due to the Ukraine dispute.

Lufthansa has said that it hopes to expand into newer. regions, including Latin America and Africa, where it might have. more of an advantage. New centers with lower cost bases, such as in. Italy, are likewise appealing methods to reinforce revenue and boost. margins.

(source: Reuters)