Lufthansa to Purchase $6 Billion Worth of Boeing Planes for Fleet Modernization and Meeting Freight Demand

Deutsche Lufthansa, a German airline, has revealed plans to buy Boeing passenger and cargo planes worth nearly $6 billion in a move to upgrade its fleet and meet the strong demand for freight transportation. The addition of fuel-efficient models and cost benefits associated with modernization will enable Lufthansa to reach its targets of at least 8% adjusted operating margin and 10% return on capital employed by 2024.

Lufthansa stated that it would purchase seven long-haul 787-9 passenger aircraft that would fill capacity gaps created by the delayed delivery of the Boeing 777-9. The 777-9 was initially scheduled for delivery in 2023 and is now expected in 2025. The airline said it would obtain the 787-9 aircraft, which were initially intended for other airlines, in 2025 and 2026. At the same time, delivery dates for 787-9s already ordered from Boeing will be revised and, in some cases, brought forward to 2023 and 2024, Lufthansa said.

In addition, Lufthansa plans to acquire a total of ten cargo planes from the 777 family, which will include three models of 777F and seven next-generation 777-8F planes. Lufthansa will receive one of the 777F planes, which has been previously operated by another airline, in the coming weeks, and two additional planes will follow later. The 777-8F freighters, based on the new technology of the Boeing 777X, that Lufthansa has ordered will begin to be delivered in 2027.

According to Boeing’s website, the passenger planes have a total list price of around $2.05 billion, while the cargo planes have a price tag of approximately $3.9 billion. With the measures announced on Monday, Lufthansa is expected to have net capital expenditures of around €2.5 billion in 2022, with an annual figure that is expected to remain at that level up to 2024.

Lufthansa’s purchase of new aircraft is part of its broader strategy to modernize its fleet, reduce costs, and meet demand. The company is investing in modern aircraft with low fuel consumption to increase efficiency and reduce emissions. By 2030, Lufthansa aims to reduce its carbon emissions by 50% compared to 2019 levels.

The airline industry has been severely affected by the COVID-19 pandemic, with travel restrictions and reduced demand leading to significant losses. However, as the world emerges from the pandemic, the demand for air travel is expected to recover gradually. Lufthansa’s investment in modernizing its fleet will help the company to remain competitive and capture growth opportunities in the post-pandemic world.

In conclusion, Deutsche Lufthansa’s purchase of Boeing planes worth nearly $6 billion is part of its strategy to modernize its fleet and meet the demand for air travel. The investment in modern aircraft with low fuel consumption will help Lufthansa to reduce costs, increase efficiency, and reduce emissions. As the world emerges from the pandemic, Lufthansa is well-positioned to capture growth opportunities and remain competitive in the airline industry.