The airline group Lufthansa's low-cost division Eurowings will focus on short-haul flights moving forward. Eurowings' long-haul flights will be transferred to other airline operators within the group.
This is evident from a press release in connection with Monday's capital markets day. Lufthansa is a Star Alliance partner of SAS and owns, in addition to Lufthansa, brands such as Austrian, Swiss and Brussels Airlines, among others.
Regarding Brussels Airlines, it is said that this part will no longer be integrated into the low-cost part Eurowings, but will instead operate closer to the Lufthansa network. Further information, including a so-called ”turnaround” plan for Brussels Airlines, is expected in the third quarter.
Last week, Lufthansa issued a profit warning, and for Eurowings, the assessment was lowered from a result around zero to an adjusted operating margin of between minus 4 and minus 6 percent. On Monday, Lufthansa stated that Eurowings should become profitable ”as quickly as possible”. The unit cost for the low-cost segment is to be reduced by 15 percent by 2022. According to Bloomberg News, Lufthansa aims to reach so-called ”break-even” for the low-cost segment during 2021.
Source: News Agency Direkt
