This is why Lufthansa is called the “problem child” of airlines

While the end of the pandemic has brought with it continued growth in air travel, not all airlines have been able to benefit equally.

Some, like Delta Air Lines (DAL) is on solid financial ground even as it struggles to meet demand amid staffing and Boeing shortages (nay) recall aircraft. Meanwhile, low-cost carriers are subject to ongoing bankruptcy rumors or face other disruptions: Spirit Airlines (SAVE) has been desperately trying to forge a new path after a judge blocked it from being acquired by JetBlue (JBLU) while Southwest Airlines (LUV) is currently trying to resist an investor’s efforts to oust CEO Robert E. Jordan.

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The airline recently named a “problem child” is the European giant Lufthansa Airlines. At least that’s how the Lufthansa Group is (DLAKF) chief executive Carsten Spohr described the namesake airline of a larger parent company that also includes regional brands such as SWISS, Austrian Airlines, Brussels Airlines and Eurowings in a Sept. 30 meeting with journalists in Frankfurt.

Lufthansa will no longer be the “problem child of the company”, promises the CEO

“We need to get Lufthansa Airlines back under control,” Spohr said at a reception ahead of the airline’s announcement of third-quarter results on Oct. 29. “It is a clear objective that the crane airline is once again the flagship and no longer the company’s problem child by the time it turns 100 in 2026.”

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The “problem child” imagery is a reference to the string of disappointing earnings calls and operational problems that have put the airline behind rivals such as Air France-KLM (AFRICAN) .

In July 2024, the airline cut its earnings interest to 1.4 billion to 1.8 billion euros from a previous range of 2.2 billion euros (about $2.44 billion USD) for reasons it attributed to ongoing strikes in Germany, supply chain issues that delayed them. plans to upgrade certain aircraft and the slow recovery of corporate travel (from which much of the airline’s traffic came).

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Spohr: Lufthansa Airlines “caught at exactly the wrong time”

As such, Spohr spoke of a turnaround looming, citing figures showing second-quarter revenue rose 7%, even as expenses and losses also rose due to the aforementioned factors.

“We again experienced enormously strong demand, which allowed us to deliver what is probably a very nice commercial performance in the summer,” Spohr said, adding that the aviation group was “caught at exactly the wrong time ” when it comes to fleet modernization and other issues.

Spohr also added that the airline currently flies 23 Airbuses (EADSF) planes he had hoped to retire already while he awaited the arrival of the 41 new Boeing planes he had ordered. The aircraft manufacturing giant has been plagued by problems of its own as it faces a federal investigation into its safety practices and alleged culture of promoting new releases at the cost of controls. The requests came amid a string of high-profile incidents, such as the exploding panel on an Alaska Airlines flight (ALK) flight in January 2024.

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