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| Lufthansa |
| Annual revenues: | $32,941m | | Annual operating profit: | $2,026m | | Annual net profit: | $1,808m | | Operating profit margin: | 6% |
(Figures are from the period of JAN07-DEC07 in U.S. dollars.)
| Fleet: | | | Type | Number in Fleet | | A300-600 | 10 | | A300-600R | 3 | | A319 CJ | 2 | | A319-100 | 20 | | A320-200 | 36 | | A321-100 | 20 | | A321-200 | 14 | | A330-300 | 15 | | A340-300 | 28 | | A340-600 | 24 | | A380-800 | 6 | | B737-300 | 33 | | B737-500 | 30 | | B737-BBJ1 | 1 | | B747-400 | 30 | | B747-800 | 20 | |
For more detailed fleet information, visit www.ch-aviation.ch
Strengths and opportunities:
- Strong global network with lots of flights to two key regions: North America and northeast Asia
- Key member of the Star Alliance; transatlantic joint venture with United, Air Canada and, soon, Continental
- Swiss performing extremely well since takeover
- Germany the largest economy in Europe and the third largest in the world (or fourth depending on how you measure China)
- Germany a decentralized country with many cities able to generate substantial air traffic
- Well positioned to serve emerging economies in eastern Europe and the ex Soviet Union
- Competes with LCCs via Germanwings, a low-fare unit; also introduced "better fly" simplified pricing for mainline
- Captures a lot of U.S-India traffic, a fast-growing segment
- Has big cargo, maintenance and catering units to offset any weakness in passenger business (though this can sometimes drag down earnings as well)
- Frankfurt airport on track to get a third runway in a few years
Weaknesses and threats:
- Frankfurt hyper-congested
- Munich hub considerably weaker than other big European hubs
- Zurich's ability to support many longhaul flights unproven
- Eastern parts of Germany struggling economically
- Berlin, located in the east, is Germany's capital but doesn't generate much longhaul traffic
- Germany not nearly as big for tourism as the U.K., France, Spain or Italy
- Tough competition from Air Berlin, which is now flying longhaul and has lots of B787s on order (though strguggling for the moment)
- Tough competition from LCCs like Ryanair and easyJet
- Weaker than Air France/KLM in both Africa and Latin America
- Emirates and other Middle Eastern carriers taking some traffic
- New U.S.-India nonstops by Air India, Continental and Delta taking some connect traffic; Jet Airways competing through Brussels
- Relatively high labor costs
Financial data is sourced from company reports. The strengths and weaknesses are based on an analysis by Airline Weekly's editors. Information provided on airlineweekly.com is for general informational purposes only and should not be construed as investment advice.
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