Lufthansa’s Aggressive Targets Revised Due to Challenges
Lufthansa Group, the German airline giant, is reconsidering its ambitious plans for 2024. CEO Carsten Spohr shared their predicament with the "Süddeutsche Zeitung," citing staff and aircraft shortages as the reasons for this change in plans.
To begin with, Spohr pointed out the engine overhauls for a certain Airbus A320 engine that led to 20 aircraft shortages throughout the year. Besides, the aircraft manufacturers' delivery problems are also causing problems.
Initially, Lufthansa had announced plans to return to 95% of its 2019 flight capacity by 2024. However, these challenges led Spohr to admit that the target was unlikely to be met. Instead, Lufthansa is planning to adjust its growth slightly in 2024, focusing on quality over aggressive expansion.
Lufthansa previously faced difficulties when restarting operations after the coronavirus pandemic. The airline was unable to meet the required staff and service provider needs, necessitating the cancellation of thousands of flights. Both Frankfurt and Munich’s punctuality took a hit, with Munich's suffering the most due to labor shortages.
Promise of Service Improvement
Spohr also pledged to enhance service quality, aiming to minimize irregularities and improve punctuality. He mentioned investing in digital services and expanding call center capacities, explaining that even during irregularities, the airline wants to offer superior service.
Lufthansa's Challenges and Response
In light of these challenges, Lufthansa is reconsidering its vacation plans. Travelers may want to consider alternative airlines for their upcoming trips as a result.
Specific challenges include Lufthansa's difficulties in Asia, weak business travel bookings, and fleet bottlenecks, among others. The airline is responding with an efficiency program called "Turnaround," focusing on profitability and strengthening its market position. This includes integrating ITA Airways, modernizing the fleet, and stabilizing flight operations.
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