Deutsche Lufthansa AG

Overview Key strengths Key risks Largest airline in Europe, ahead of Air France-KLM and IAG S.A. and fourth largest worldwide (by pre-pandemic revenue), with leading positions at its main hubs in Frankfurt, Munich, Zurich, Vienna, and Brussels. Susceptibility to European and global economic cycles, oil price fluctuations, high capital intensity, pandemics, and unforeseen geopolitical and security events (such as the Russia-Ukraine conflict). One of the world's largest route networks and balanced exposure to high-yield, premium, and long-haul traffic across the route portfolio. Risk of structural losses in business traffic insufficiently compensated by the premium class expansion. Passenger revenue streams complemented by a leading market position in aircraft, maintenance, repair, and overhaul (MRO) and a significant share in the market for

...Deutsche Lufthansa AG (Lufthansa) is expanding its flight schedules and plans to deploy 75% of its 2019 capacity in 2022. The airline is ramping up capacity in the peak summer months, to approximately 85% of 2019 levels in third-quarter 2022. It has said short-haul capacity utilization will return to approximately 95% of pre-pandemic levels, while low-cost subsidiary Eurowings' offered seats will exceed those of summer 2019. Capacity on Lufthansa's transatlantic routes will reach approximately 85% in the third quarter. By comparison, the airline's capacity deployment in 2021 reached only about 40% of 2019 levels, bolstered by a solid increase to 60% in the fourth quarter after the reopening of North American destinations from November. Based on current bookings, Lufthansa expects yields to increase by at least the high single digits for the rest of 2022 compared to 2021 and be particularly strong in the summer. Overall, yields will be higher in 2022 than before the pandemic. Based on Lufthansa's...

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