Lufthansa Group has just announced a major aircraft order for up to 200 jets, which will see a new aircraft type inducted into the fleet of the airline group.
Lufthansa Group orders new narrow body jets
Lufthansa Group is placing a firm order for 80 new jets, with options for an additional 120 new jets. This deal is worth around $9 billion at list prices, though of course airlines never pay list prices. This order is comprised of the following:
- Lufthansa Group will purchase up to 60 Airbus A220-300s, with a firm order for 40 jets and options for 20 jets; these will be delivered between 2026 and 2031
- Lufthansa Group will purchase up to 100 Boeing 737 MAX 8s, with a firm order for 40 jets and options for 60 jets; these will be delivered between 2027 and 2032
- Lufthansa Group has new purchase options for an additional 40 Airbus A320 family aircraft, with an undisclosed delivery timeline
Here’s how Dr. Detlef Kayser, a member of the Lufthansa Group Executive Board, describes this aircraft order:
“With today’s aircraft order, we are accelerating the largest fleet modernization in our company’s history. This increases our order list of around 200 aircraft to 280 – plus an additional 120 purchasing options for further state-of-the-art short- and medium-haul aircraft. We are pleased that both Airbus and Boeing were able to convince us on all commercial and technological aspects.”
“In addition to this, the decision for the Boeing 737-8 MAX will also give us more flexibility for the procurement of short- and medium-haul aircraft in the future. The new ultra-modern aircraft offer our guests additional comfort. They are also quieter, more economical, more efficient, and emit up to 30 percent less CO2 than their predecessor models. The order demonstrates our airlines’ future viability and ability to invest, and it shows that we are living up to our responsibility to reduce our carbon emissions.”
For which airline will these new Lufthansa Group jets fly?
Lufthansa Group has several airlines, including Lufthansa, SWISS, Austrian, Brussels, and more. So for which airlines will these new aircraft fly?
The Airbus A220-300s are explicitly intended for Lufthansa City Airlines, which is Lufthansa’s new subsidiary, that’s intended to save on labor costs. The airline will launch flights in 2024, and will operate feeder flights for Lufthansa out of Frankfurt (FRA) and Munich (MUC).
The airline is initially launching with Airbus A319s, but that’s only intended as a temporary measure. It’s logical that the airline would then switch to Airbus A220s, as those planes have great fuel efficiency and similar capacity. This won’t be the first time that Lufthansa Group flies A220s, as SWISS also has these in its short haul fleet.
What’s perhaps more interesting is the order for the Boeing 737 MAX. So, for which Lufthansa Group airline will these planes fly? Lufthansa Group states that these planes won’t be flying for Lufthansa City Airlines or for SWISS, since those airlines already have their fleet renewal figured out. Instead, the decision of which airline the planes will fly for will be made at a later date.
I could see Austrian Airlines and/or Brussels Airlines eventually flying 737 MAXs, given that the airlines have a lot fewer next generation short haul aircraft than Lufthansa and SWISS. That would mean the airlines would eventually transition from an Airbus to Boeing narrow body fleet. Only time will tell, and we’re nearly four years off from the first delivery, so a lot can change.
As far as the additional Airbus A320 family options go, those could easily go to any Lufthansa Group carrier, since they all fly that aircraft type.
Bottom line
Lufthansa Group has just placed a large narrow body aircraft order. This includes up to 60 Airbus A220-300s (40 of which are firm orders), which will fly for new subsidiary Lufthansa City Airlines, and it also includes an order of up to 100 Boeing 737 MAX 8s (40 of which are firm orders), which will fly for a Lufthansa Group carrier other than Lufthansa City Airlines or SWISS.
It’s not surprising to see Lufthansa City Airlines get A220s, since that’s a logical fit. I think the much more interesting question is which airline will end up taking the 737 MAXs.
What do you make of Lufthansa Group’s aircraft order?
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.