Lufthansa Predicts a Sluggish Q3 US Flight Business After a Sweltering Summer Summit
US commercial airline Lufthansa forecasts a leveling off of its business in the United States following a robust summer season.
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Get ready for a chill in Lufthansa's US flight business in the third quarter, following a sizzling summer season. CEO Carsten Spohr let the Economic Journalistic Association Düsseldorf (WPV) know this on Thursday evening, stating, "We're expecting more jet-setters bound for the North Atlantic this summer compared to previous years." Lufthansa Group takes 60 daily flights Stateside. "The first quarter was stronger than last, but I forecast a lull in Q3." This downturn is more noticeable in flights departing Germany than vice versa. Europeans are eager to fly, while America's travel demand and prices remain high, causing Lufthansa to elevate the number of seats booked in the US. The North Atlantic business serves as the primary profit driver for Lufthansa's passenger airlines, including Lufthansa, Austrian Airlines, Brussels Airlines, Swiss, and most recently, ITA Airways.
The rollout of the turnaround program, which is now in its second year, is sailing ahead as planned, assures Spohr. The ultimate goal is to generate a gross result effect of 1.5 billion euros by 2026 and 2.5 billion euros by 2028. This program is about more than just cutting costs; it's about investing in prime long-haul seats that command higher prices.
Lufthansa is in no rush to buy new aircraft, asserts Spohr. No announcements will be made at the upcoming Paris Air Show, either. Lufthansa is currently executing its largest modernization program to date. "We're at the limit of what we can afford with our current order of 250 aircraft."
When it comes to the potential Q3 slowdown, Lufthansa might execute operational adjustments, such as readjusting flight schedules and capacities to match reduced demand, thereby potentially containing costs and improving efficiency. To woo travelers during this slump, Lufthansa could focus on marketing, customer service, and competitive pricing to attract more passengers.
Remember, this Q3 forecast pertains to 2025, as specific 2022 figures are currently unavailable. Still, considering general factors affecting airline demand, such as post-summer blues, economic uncertainties, and competition, can help us anticipate Lufthansa's approach and preparedness to tackle similar challenges.
The potential Q3 slowdown in Lufthansa's US flight business could prompt Lufthansa to adjust flight schedules and capacities, promoting cost containment and efficiency. To attract more passengers during this period, Lufthansa might also emphasize competitive pricing, improved customer service, and lifestyle-focused marketing initiatives, similar to travel trends. Despite this, Lufthansa's employment policy may remain steadfast, prioritizing investments in premium long-haul seats for higher profit margins.
