Eurowings to prioritise short haul, point-to-point operations, break even target in 2021

24 June, 2019

Lufthansa Group provided (24-Jun-2019) an update to investors on further development of its airline strategy. A key element is a set of measures to realign Eurowings, which should become profitable "as swiftly as possible" and "sustainably generate value for shareholders". Details include:

  • A "clear focus" on short haul and point-to-point operations at Eurowings;
  • Eurowings long haul transfer of commercial responsibility to network airlines by the end of 2020;
  • Less complexity and higher productivity through a reduction to one AOC in Germany by mid 2022;
  • Standardisation on the A320 Family by the end of 2022;
  • Increase crew and fleet productivity and reduction in external labour force until 1H2020;
  • 15% reduction in unit costs (CASK) to EUR 5.20 cents by 2022;
  • Overhead cost reduction of 30% between 2019 and 2022;
  • Focus on ancillary portfolio and digital sales channels to drive additional revenue streams;
  • Break even targeted in 2021;
  • Long term ambition to generate an adjusted EBIT margin of at least 7%. [more - original PR]