European airlines struggle with plane delays, high costs in Q3
Lufthansa expects five-year delay on Boeing 777X deliveries
Airlines forced to fly older models
Lufthansa reports results on Oct. 29
Air France-KLM hit by lower ticket bookings tied to Paris Olympics
BA to cancel some long-haul flights due to engine delivery delays
Updates with Lufthansa statement in paragraphs 8-9
By Joanna Plucinska
LONDON, Oct 28 (Reuters) -Europe's major airlines including Lufthansa and Air France-KLM are expected to report another quarter dragged down by rising costs and limited planes, with no sign of delivery delays from planemakers Boeing and Airbus improving any time soon.
While demand has remained stable, costs for maintenance, adverse weather, air traffic control issues and disruption in the Middle East have continued to weigh on carriers.
Delays of new plane deliveries are the biggest ongoing headache, though, forcing airlines to fly older models that are more expensive to maintain and use more jet fuel and cut traffic estimates.
Lufthansa LHAG.DE Chief Executive Carsten Spohr warned the airline is now expecting a five-year delay on its Boeing BA.N 777X deliveries.
"We don't expect to get them until 2026. And we need them," he told journalists earlier this month.
The German carrier is expected to report on Tuesday a third-quarter operating profit of 1.3 billion euros ($1.4 billion), down 9% from a year ago and a margin of 12.1%, according to a company-led analyst poll.
The airline is losing up to $550,000 per flight on its route from Frankfurt to Beijing as a result of flying older jets with few passengers, according to a Bloomberg report, as it struggles with competition from Chinese carriers who still fly over Russian airspace.
"European airlines are in an extremely unequal competitive position with China, as well as with airlines from the Persian Gulf and Bosporus," a Lufthansa spokesperson told Reuters in an emailed statement.
"All airlines from these countries benefit from low location costs, different social standards and high government investment in the aviation sector."
British Airways, owned by IAG ICAG.L, has said it will cancel more long-haul flights due to delivery delays from engine maker Rolls-Royce RR.L.
Air France-KLM AIRF.PA is also set to take a hit on third-quarter revenue, according to analysts, due to lower ticket bookings tied to the Paris Olympics. It reports results on Nov. 7.
These challenges have dragged airline shares down in the last six months. And while they've recovered slightly in the last month, investor worries over the sector's health have prevailed.
Only IAG has seen a substantial hike in its share price, up over 20% in the last six months as it continues to build on its strength in the North Atlantic market and faces fewer delivery delays.
The airline is expected to report on Nov. 8 an operating profit of 1.78 billion euros, according to a company-led analyst consensus, up 2% from last year.
BLEAK OUTLOOK
Some airlines have said that the worst is yet to come. Delivery delays could hit harder in 2026 as current supply chain issues impact new plane production.
That said, with fewer available seats due to constrained capacity, airlines can charge higher fares if demand stays robust as it is expected to, analysts say.
But that dynamic does not seem to be playing out.
"Ordinarily one might expect a lower level of capacity as a result of these delays to boost results, in a robust demand environment. Yet most carriers in Europe and North America are producing disappointing results," said Neil Glynn, managing director at AIR Control Tower.
They will also get a financial boost next year from lower jet fuel prices if they lower the amount of hedges they have.
($1 = 0.9228 euros)
Europe's airline shares stabilize in Q3 https://tmsnrt.rs/3Yh83M9
Additional reporting by Julia Payne; Editing by Josephine Mason and Emelia Sithole-Matarise
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إخلاء المسؤولية: تتيح كيانات XM Group خدمة تنفيذية فقط والدخول إلى منصة تداولنا عبر الإنترنت، مما يسمح للشخص بمشاهدة و/أو استخدام المحتوى المتاح على موقع الويب أو عن طريقه، وهذا المحتوى لا يراد به التغيير أو التوسع عن ذلك. يخضع هذا الدخول والاستخدام دائماً لما يلي: (1) الشروط والأحكام؛ (2) تحذيرات المخاطر؛ (3) إخلاء المسؤولية الكامل. لذلك يُقدم هذا المحتوى على أنه ليس أكثر من معلومات عامة. تحديداً، يرجى الانتباه إلى أن المحتوى المتاح على منصة تداولنا عبر الإنترنت ليس طلباً أو عرضاً لدخول أي معاملات في الأسواق المالية. التداول في أي سوق مالي به مخاطرة عالية برأس مالك.
جميع المواد المنشورة على منصة تداولنا مخصصة للأغراض التعليمية/المعلوماتية فقط ولا تحتوي - ولا ينبغي اعتبار أنها تحتوي - على نصائح أو توصيات مالية أو ضريبية أو تجارية، أو سجلاً لأسعار تداولنا، أو عرضاً أو طلباً لأي معاملة في أي صكوك مالية أو عروض ترويجية مالية لا داعي لها.
أي محتوى تابع للغير بالإضافة إلى المحتوى الذي أعدته XM، مثل الآراء، والأخبار، والأبحاث، والتحليلات والأسعار وغيرها من المعلومات أو روابط مواقع تابعة للغير وواردة في هذا الموقع تُقدم لك "كما هي"، كتعليق عام على السوق ولا تعتبر نصيحة استثمارية. يجب ألا يُفسر أي محتوى على أنه بحث استثماري، وأن تلاحظ وتقبل أن المحتوى غير مُعدٍ وفقاً للمتطلبات القانونية المصممة لتعزيز استقلالية البحث الاستثماري، وبالتالي، فهو بمثابة تواصل تسويقي بموجب القوانين واللوائح ذات الصلة. فضلاً تأكد من أنك قد قرأت وفهمت الإخطار بالبحوث الاستثمارية غير المستقلة والتحذير من مخاطر المعلومات السابقة، والذي يمكنك الاطلاع عليه هنا.
