Lufthansa Announces Plan to Retire A340s and Boeing 747-400s by 2028

Lufthansa has revealed a strategic update to its fleet management, announcing the retirement of all its A330-200s, A340-300s, A340-600s, and Boeing 747-400s by 2028. This decision is part of a broader turnaround programme aimed at reducing the complexity and operational costs associated with maintaining a diverse widebody fleet.

The current fleet includes seventeen A340-300s, seventeen A340-600s, and eight Boeing 747-400s, all of which are owned by the airline, according to the ch-aviation fleets module. Additionally, while Lufthansa no longer operates A330-200s—having retired its last of the model in 2006—its leisure-focused subsidiary, Discover Airlines (4Y), continues to operate three.

This retirement plan is part of Lufthansa’s efforts to streamline operations amidst financial challenges, as indicated in its recent earnings release. The group reported a EUR 212 million (approximately USD 229 million) operating loss for the first half of 2024, with Lufthansa alone posting a EUR 442 million (about USD 478 million) loss.

One of the significant strains on the airline has been the delay in aircraft deliveries, particularly affecting the renewal of its fleet. Originally, the airline had planned to receive more Boeing 787-9s and Boeing 777-9s between 2019 and now, but has received 41 fewer than expected. To compensate, Lufthansa extended the service life of twenty-three A340-300s and Boeing 747-400s, a measure that only partially mitigated the impact of these delays. The airline cites these delays, along with rising fuel and operating costs, as key factors contributing to increased “irregularity costs” and reduced crew productivity, estimating the cost of these delayed deliveries in the triple-digit millions of euros.

Despite these challenges, Lufthansa remains committed to its future strategy, which includes a tighter focus on its premium products, a more seasonal network, and expansions in operations of Lufthansa City Airlines and Discover. The plan aims to reposition Lufthansa as “fit for the future” and restore its status as the group’s flagship carrier.

While Lufthansa faces a host of challenges, including negative market developments in the Asia-Pacific region and rising labor costs in Germany, its other carriers within the group, such as Swiss, continue to perform relatively well. Swiss was the only carrier to post an operating profit in the first half of the year, while Austrian Airlines, Brussels Airlines, and Eurowings reported smaller losses.

This fleet modernization and operational overhaul are critical as Lufthansa navigates through these turbulent times, aiming to enhance efficiency and reduce costs while maintaining its commitment to service excellence and operational reliability.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com