DLAKY Deutsche Lufthansa AG (QX)

By Mauro Orru

Deutsche Lufthansa ordered 80 short- and medium-haul aircraft from Airbus and Boeing worth around $9 billion at list prices, marking what the group called the largest fleet modernization in its history as it scrambles for planes to meet surging demand for international air travel.

The German carrier group on Tuesday said it ordered 40 Airbus A220-300s with the option to buy an additional 20 aircraft, and 40 Boeing 737-8 MAX with the option to add another 60. The company, whose airlines include Swiss, Austrian Airlines, Brussels Airlines and Eurowings aside from the eponymous Lufthansa, said it could also purchase 40 aircraft from Airbus's A320 family. Deliveries should stretch from 2026 to 2032.

While the firm orders are worth around $9 billion at list price, buyers typically receive steep discounts on large-scale orders from plane manufacturers. Lufthansa doesn't expect the orders to have a significant impact on the group's capital expenditure in 2023 and next year.

"With today's aircraft order, we are accelerating the largest fleet modernization in our company's history," said Executive Board member Detlef Kayser. "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."

Travel restrictions and border closures brought international traffic to a near standstill at the height of the pandemic. Now, airlines are scrambling for planes to expand capacity to meet surging demand for international air travel.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

December 19, 2023 07:02 ET (12:02 GMT)

Deutsche Lufthansa (QX) (USOTC:DLAKY)
Historical Stock Chart
From Oct 2024 to Nov 2024

Deutsche Lufthansa (QX) (USOTC:DLAKY)
Historical Stock Chart
From Nov 2023 to Nov 2024