28 September 2017
Lufthansa Group in Italy Growing on Innovation and Quality Milano
lufthansagroup.com Lufthansa Group in Italy page 0
Our Strategy: Based on three strategic pillars
#1 for customers, shareholders, employees and partners
Network Airlines
Aviation Services
#1 in Europe
Point-to-Point Airlines #1 in home markets (D, AT, CH, B)
Premium positioning and increasing profitability
Strengthening of competitive position
Participation in global market development
#1 world-wide
Additional Businesses and Group Functions
Exploiting synergies and consistent capital allocation Lufthansa Group in Italy page 1
Network Airline Strategy Increasing revenues Strong revenue backbone ➢ One single Lufthansa Group revenue management ➢ 70% of long-haul revenues covered by commercial Joint ventures
Premium positioning & new products ➢ 180 aircraft with broadband internet
Innovation & digitalization ➢ 500m EUR dedicated funds Lufthansa Group in Italy page 2
Reducing costs Efficient and modern fleet ➢ Successful phase-in of CSeries, A320neo and A350 ➢ minus 20% cash operating costs ➢ 40 new aircraft in 2017
Modernizing labor cost structures ➢ New schemes for all employees ➢ Agreement in principle reached with pilots’ union until 2022 ➢ Planning reliability due to industrial peace until 2022
5 Airlines: 11,738 weekly frequencies, 308 destinations, 103 countries worldwide Europe
447 frequencies /w 25 destinations 2 countries
6,970 frequencies/w 163 destinations 40 countries
Middle East 189 frequencies/w 15 destinations 11 countries
Africa South America 73 frequencies/w 13 destinations 9 countries
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203 frequencies/w 38 destinations 28 countries
(DE, AT, CH, BE)
3,595 frequencies/w 32 destinations 4 countries
w/o homemarkets
North Atlantic
Homemarkets
Far East 261 frequencies/w 22 destinations 9 countries
New Airbus A350 ▪
Most modern & eco-friendly long-haul passenger aircraft in the world
▪
More spacious experience & pleasant cabin pressure, larger screens
▪
Operating from Munich to Delhi, Boston, Mumbai and Hong Kong
▪
First 15 aircraft operate from Munich, 5 already in service
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Munich Terminal 2 is #1 worldwide ▪
MUC Terminal 2 awarded “World’s Best Airport Terminal” by Skytrax
▪
New satellite opened April 2016 offers 52 new gates and 5 new Lufthansa Group lounges (incl. First Class Lounge)
▪
Access of satellite through Terminal 2 via metro (1 min)
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Innovation & digitalization: Set the benchmark in the industry by investing over â‚Ź500m until 2020
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Lufthansa Group in EMEA: record passenger & seat load factor
Passengers
PL
NL
RO
BE
HU IT
ES
in 1,000
49,052
+5.5%
Available seat-kilometres m
51,757
+3.2%
Revenue seat-kilom.
39,516
+6.1%
76.3
+2.1pts
UA
BG PT
Change vs. 1-8/2016
RU
DK
GB
FR
FI
SE
NO
Traffic figures Europe Network & Cargo Jan-Aug 2017
IL
Passengers load-factor
IR
EG SA
AE
%
Traffic figures Middle East & Africa Network & Cargo Jan-Aug 2017
NG
KE
m
PASSENGERS Positive to PY Stable to PY
Passengers
Change vs. 1-8/2016
in 1,000
3,158
+12.5%
Available seat-kilometres m
16,164
+9,5%
Revenue seat-kilometres m
12,733
+13.3%
78.8
+2.7pts
SEAT LOAD FACTOR Positive to PY Stable to PY Top 25 markets in EMEA by ASK, excl. DE, AT, CH Figures for LH, LX, OS
ZA Lufthansa Group in Italy page 7
Passengers load-factor
%
LHG in Italy 2016 ïƒ 2017: One year later
Lufthansa Group in Italy page 8
LHG in Italy 2016 ïƒ 2017: One year later
LH GROUP JAN-AUG 2017: > 6 Mio. Passengers to/from Italy +12% vs. 2016 HUB airlines +6% P2P airlines +28% Lufthansa Group in Italy page 9
LHG in Italy 2016 2017: A won Challenge
Best results in Italy since 5 years ▪
Italy above average growth in Europe - back on growth path by passengers & revenue
▪
We win back customers from competition
▪
All LHG airlines are growing (HUB & P2P airlines)
▪
All customer segments are growing (Corporate & Leisure)
▪
Outlook for next months confirms further growth
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LHG in Italy Reasons of the market success Implementation of the LHG strategy in Italy –
New concepts for growth, digitalization leads to new offers, effective & lean organization, customer centricity & quality focus
Stable presence in the market –
LHG serving 21 airports in Italy, close relationship with the different regions, both outgoing & incoming traffic. Most destinations served since decades, reliable team
Product innovations –
Invest in new aircraft & services (flight & ground->A320neo,New Terminal MUC, WIFI on board, performing Hubs & choice among LHG airlines)
Loyal customer community – –
> 1.5 Mio M&M customers , strong backbone corporate traffic > 7.000 corporate partnerships, new customers with leisure destinations, new partnerships (cruise)
New agility to react on market changes –
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Lean setup, fast decision taking win back customers, win new customers. Italy priority market with high focus
LHG in Italy Increasing capacity next winter 17/18 ▪
In Winter 17/18 almost 1.000 flights/week from/to Italy with LHG airlines (+9%)
▪
HUB airlines +6%, P2P airlines +28% more flights
▪
New flights – –
▪
LH : Frankfurt to Bari/Catania/Genova/Palermo EW: Munich to Catania/Napoli/Roma
Milano (MXP)
Venezia (VCE)
Milano (LIN)
Torino (TRN)
Trieste (TRS)
Verona (VRN) Genova (GOA) Bologna (BLQ)
Pisa (PSA) Firenze (FLR)
Ancona (AOI) Perugia (PEG)*
Roma (FCO)
Bari (BRI)
Increase of frequencies – – –
– Lufthansa Group in Italy page 12
LH: Frankfurt to Napoli/Pisa/Verona/Roma OS: Vienna to Bologna/Milano/Napoli EW: Vienna to Roma; Stoccarda – Bari/Catania/Milano; Duesseldorf – Catania/Napoli/Roma SN: Brussels to Milano/Roma
Olbia (OLB)*
Napoli (NAP) Brindisi (BDS)*
Lamezia (SUF)* Cagliari (CAG)*
Palermo (PMO) Catania (CTA)
LHG in Italy Focus topics 2018
Leisure
New leisure destinations in 2018 (i.e.Costa Rica, San Diego, Seychelles) Competitive offers & products (3 classes) Further increase partnerships with leisure producers
Lufthansa Group in Italy page 13
Corporate
Corporate business remains sales backbone in Italy Free of charge Corporate Program with even more attractive incentive scheme (PartnerPlusBenfit) New MXP lounge More flexibility for biz travelers (change of flight on same day)
LHG in Italy Focus topics 2018
Digitalization in Italy Development of tech solutions that provide our customers with new individualized products. Best practice already in Germany with new corporate offers. Promising discussions already in Italy
Develop performing sales tools to automate & simplify processes (i.e. Groups booking tool)
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Mille grazie – Thank you for your attention – your questions, please ! Lufthansa Group in Italy page 15