German airline group Lufthansa is hopeful that the new U.S. administration will support Boeing in overcoming issues that have led to industry-wide delivery delays, CEO Carsten Spohr said Thursday.
The company expects 2025 will be the year when it starts to recieve aircraft for which it has been “waiting for so long now,” Spohr told CNBC’s Annette Weisbach.
In results published Thursday, Lufthansa reported a 39% year-on-year drop in earnings before interest and taxes (EBIT) to 1.645 billion euros ($1.78 billion), citing delivery delays as well as staff strikes and global price pressures. The earnings nonetheless beat consensus estimates, driving shares 13% higher by early afternoon, before slightly paring gains.
Lufthansa has 41 twin-aisle aircraft in the U.S. alone waiting to be delivered, Spohr said. Meanwhile, almost all of the more than 240 jets it has on order over the coming years are set to be impacted by delays of some kind.
“Either due to supply chain issues within the production of the aircraft or due to certification issues, especially in the U.S. between Boeing and the [Federal Aviation Administration],” Spohr said.
“So [we are] hoping this will be overcome, maybe also with some support of the new U.S. administration, [this] will hopefully allow us to operate the most modern aircraft, which is to the advantage of our passengers but also to the advantage of our shareholders due to lower costs.”
Aircraft shortages and the need to keep older models in operation has caused issues with extra fuel costs and punctuality at the Lufthansa Group — which includes the eponymous German flag carrier along with low-cost subsidiary Eurowings, Austrian Airlines, Brussels Airlines, ITA Airways and Swiss International Air Lines.
Boeing’s European rival Airbus is also grappling with supply chain issues that have been impacting airlines around the world for years.
However, the U.S. manufacturing giant has additionally come under heightened regulatory scrutiny following numerous safety incidents involving its jets, including two fatal crashes and an in-flight door plug blowout, as well as allegations of safety shortcuts.
Transatlantic relationship ‘growing’
Spohr said that, despite challenges, the airline group was confident it could deliver on its forecast of “significantly” higher profit in 2025, largely because of the strength of global airline demand.
While corporate demand has partly recovered since pandemic travel restrictions were lifted, growth is being driven by leisure demand even on premium economy and business routes, he said.
Spohr also told CNBC that North Atlantic travel was the backbone of Lufthansa’s long-range network and that, despite “current discussions” — which include the threat of U.S. tariffs on the European Union and President Donald Trump’s souring relations with Europe over both trade and the Ukraine war — demand was growing.
“The transatlantic relationship is not only in tact, it’s growing… we see now impact so far yet [under Trump], we see strong bookings out of the U.S. but also strong bookings from Europe towards the U.S.”
“Of course, tariffs will not be supporting global trade so let’s hope that can be avoided, but nevertheless my optimism is partly fueled this year by very strong transatlantic travel on both sides of the Atlantic.”
Another tailwind for the company may come from increased German fiscal spending, Spohr said, after German political parties agreed to attempt to reform the country’s longstanding debt rules — seen by many as a potential game-changer for the struggling economy.
“Any stimulus which helps the German economy to grow will support our business,” he said.
“I’m optimistic. I think that the broad political spectrum realized the German way of living cannot be maintained without a healthy economy. We big European companies need to play our part by investing in Germany, believing in Germany.”