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Deutsche Lufthansa AG: Company Strategy & Performance Analysis

Deutsche Lufthansa AG: Company Strategy & Performance Analysis

Summary

Deutsche Lufthansa AG (Lufthansa) participates in several segments of the aviation sector. The company operates 540 subsidiaries worldwide. In FY2016, it operated 617 aircraft with an average age of 11.3 years. Lufthansa provides services across Europe, North America, Asia-Pacific, Central and South America, the Middle East, and Africa. The company operates through five business segments, namely Passenger Airline Group, MRO, Catering, Logistics and Others. The passenger airline group segment constitutes the core business of Lufthansa.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading airline companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including: number of seats sold, number of seats available, number of passenger kilometres available, number of revenue generating passenger kilometres available, load factor and revenue per passenger.

Key Highlights

Eurowings strengthened the position of Lufthansa Group in the European market

The company started Eurowings airlines to cater to price-sensitive and service-oriented customers in the growing European market. The brand has helped the company to enhance its point-to-point route connections in Europe. This has allowed the company to strengthen its presence in European countries, particularly in Germany, Austria, Switzerland and Belgium.

The company posted an increase in available seat miles and revenue passenger miles

Lufthansa Group’s available seat miles stood at 178.1 billion in 2016, in comparison to 170.2 billion in 2015, indicating a growth rate of 4.6%. The increase was primarily due to the deployment of larger aircraft, which led to growth in aircraft capacity. Capacity growth was particularly strong in the American, European and Asian regions.

Lufthansa acquired Brussel Airlines

In December 2016, Deutsche Lufthansa acquired 55% of the shares in SN Airholding, the parent company of Brussels Airlines. The transaction was completed in early January 2017. The acquisition of Brussels Airlines and a lease agreement with Air Berlin significantly strengthened Eurowings’ position as a leading point-to-point airline in the German market. It also captured third position in the European market.

Scope

  • Company Snapshot - Detail key indicators and rankings of Deutsche Lufthansa AG in terms of revenue, net income and operating income, number of seats sold, number of seats available, number of passenger kilometres available, number of revenue generating passenger kilometres available, load factor and revenue per passenger in the company’s key markets.
  • Company SWOT Analysis - Outlines Deutsche Lufthansa AG’s strengths and weaknesses, and weighs the opportunities and threats facing the company.
  • Growth Strategies - Understand Deutsche Lufthansa AG’s corporate goals and strategic initiatives and evaluate their outcomes.
  • Company Performance and Competitive Landscape - Analyse the company’s performance by business segments such as passenger airlines, logistics, MRO and catering, as well as peer comparison on parameters such as revenue and number of seats sold.
  • Key Developments - Showcase Deutsche Lufthansa AG’s significant recent corporate events, changes and initiatives.
  • ICT Spending Prediction - Understand how the company allocates its ICT budget across the core areas of its enterprise, namely hardware, software, IT services, communications and consulting.
Reasons to buy
  • How does Deutsche Lufthansa AG ranks among peers in terms of number of seats sold globally?
  • What are Deutsche Lufthansa AG’s main growth strategies and how successful has the company been at implementing them?
  • How has the company performed since 2014 in terms of its segments, which include passenger airlines, logistics, MRO and catering?
  • How has Deutsche Lufthansa AG performed in comparison to competitors such American Airlines Group Inc., Delta Airlines, Inc. and United Continental Holdings Inc?
  • What are Deutsche Lufthansa AG’s strengths and weaknesses and what opportunities and threats does it face?


Company Snapshot
Company SWOT Analysis
Growth Strategies
Company Performance
Competitive Landscape
Deals
Key Developments
ICT Spending Predictions
Financial Summary
Appendix

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