Lufthansa AG announced its consolidated financial results for the year 2010 showing spectacular rebound on the year from 2009. Thus confirming that the industry had been on a path to recover fully from the recession began in 2008. The airline and its wholly owned subsidiary companies including carriers Swiss, Austrian Airlines, British Midland, German Wings, logistics specialist Lufthansa Cargo, Maintenance Repair and Overhaul provider Lufthansa Technik, IT services provider Lufthansa Systems and caterer LSG Sky Chefs showed a combined workforce of 117,019 (0.4% less than in 2009). Operating profit of 876 million euros and net profit of 1.1 billion euro were realized thanks to a 17.5% growth in passengers carried worldwide with 22.8% for Middle East/Africa region, 19% in Europe, 11.3% in Asia/Pacific and 7.5% in America. The logistics operation segment primarily under Lufthansa cargo with partners Jade Cargo International and Aerologic brought in a 310 million euros profit. Nonetheless passenger transportation still accounted for 74.1% of the group’s revenues share (logistics providing 9.9% of revenue, MRO 8.8%, catering 6.3% and IT services 0.9%). Operating expenses grew by 19.8% on account of rising fuel prices with total revenues of 27.3 Billion euros (including 22.3 Billion euros of traffic revenues ).
The group’s supervisory board also announced orders for 35 new aircraft to be purchased for both the passenger airline segment and cargo segment. The airline selection of the newest fuel efficient Airbus 320neo for its medium haul European operation is a step towards greater fleet efficiency as Airbus claims the newer fuel efficient member of the A320 family will deliver 15% cost savings in fuel expenses. Lufthansa order for 25 A320neo and 5 A321neo is worth approximately $2.8 Billion. The neo family offers performance improvements over legacy A320 thanks to improved aerodynamics refinements relying using large blended wing tips extensions devices similar to Boeing Aviation Partners winglet offered on Boeing 737NG, 757 and 767. Airbus forecast neo to sell up to 4,000 units between the years 2015 and 2025. Deliveries to Lufthansa would start in 2016.
Lufthansa Cargo with its 18 MD-11, on accounts of its 37% share of total freight capacity for the group will receive 5 Boeing 777 freighters scheduled to join the fleet in 2013. The Boeing 777F or -LRF is derived from its passenger sibling the Boeing 777-200LR (Long Range). The 777F is highly appreciated by logistics operator as the airplane cargo carrying capacity of 112 tons (102 metric tons) is similar to the Boeing 747 but with dramatically improved economics in the form of 2 powerful General Electric’s GE90-110B1 (110,000 lbs of thrust) provide travel ranges of up 4,900 nautical miles (9,070 km) and much lower fuel burn. Boeing lists the 777 freighter at $269.1 millions.