Embraer backlog reached the highest level over past 7 years and deliveries increased 67% in 1Q24
Embraer signs MoU with AICAT to improve cooperation with the Austrian aerospace industry
Eve Air Mobility and AirX Inc. Sign Letter of Intent for up to 50 eVTOLs, Service Support and Urban ATM Software
Lufthansa Allegris takes off May 1, 2024
Eve Air Mobility Names KAI as Supplier for eVTOL Pylons
3rd Romanian city debuts in LOT Polish Airlines’ network
New culinary highlights in Lufthansa Business Class
Azorra delivers first Embraer E190-E2 aircraft to Scoot
Embraer and ENAER announce cooperation agreement in Chile
Embraer and Brazilian Air Force begin studies for special mission platforms
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Embraer and Horizon Air sign agreement for Collaborative Inventory Planning
Embraer and Horizon Air signed a contract for the Embraer Collaborative Inventory Planning (ECIP), a customized expendables spare parts inventory management program designed to help customers reduce operational costs by optimizing inventory levels. The agreement guarantees support for 41 E175 from Horizon Air fleet operating at the company hub in Portland, OR. The contract also includes nine E175s to be delivered, totaling 50 aircraft covered. All the jets are flown by Horizon Air under the Alaska Airlines flag. “We are very pleased to welcome Horizon Air to the Embraer Collaborative Inventory Planning. ECIP was designed to help our customers gain efficiency and reduce inventory costs in all operations. This is even more important for airlines with large fleets and fast growth like Horizon Air”, says Carlos Naufel, President and CEO, Embraer Services & Support. ECIP offers several advantages to customers. First, most of the inventory investment is done by Embraer, reducing substantially the investment usually carried out by airlines. Also, fixed yearly pricing for each part allows customers to balance costs more precisely at guaranteed performance levels by Embraer Services & Support. The operation is data-driven, with a weekly ordering recommendation based on customer usage and stock level data that is created utilizing advanced software and Embraer Planning experience shared collaboratively. Finally, all airlines participating in ECIP can count on Embraer’s materials management expertise and a global logistics network with best-in-class performance.
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Embraer and Correios sign Memorandum of Understanding for optimization studies in air cargo transport
Embraer and Correios, Brazil’s state-controlled postal company, today signed a Memorandum of Understanding (MoU) focused on air cargo transport. Both companies will conduct joint studies to advance the optimization and expansion of the Brazilian and international air networks for large cargo and goods. The strategic partnership between the companies will seek to increase Correios’ efficiency in air transport and reduce operation costs compared to other modes. It will also evaluate challenges and opportunities for new business models involved in Embraer platforms, such as the E-190F, E-195F, and C-390 Millennium. "With this partnership, we will be able to bring more efficiency to our logistics network and thus benefit the Brazilian population, which is our greatest mission as a public company and representative of the federal government. We are the largest air cargo operators in the country; no other logistics company has even half the airlines and cargo handled by Correios," says Fabiano Silva dos Santos, President of Correios. The executive also stresses that the remodeling of the state-owned company's air network is part of the company's modernization project, Correios do Futuro (Correios of the Future). “We are very pleased to collaborate with Correios in studying a more efficient logistics network for the transport of goods, both in Brazil and internationally. Embraer has a consolidated aircraft portfolio, and the solutions to be studied together will allow Correios to expand its service offering to its customers with high reliability and efficiency,” said Bosco da Costa Junior, President and CEO of Embraer Defense & Security. Embraer is on schedule to complete its first conversion from E-Jet to a cargo version of the aircraft, having already successfully completed the first flight test. Embraer currently has two contracts for converting up to 20 E-Jets into freighters.
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LOT Polish Airlines has obtained the IATA CEIV Lithium Batteries certification
LOT Polish Airlines has obtained the IATA CEIV Lithium Batteries certification, relative to the transportation of lithium-ion batteries or their components. The successful completion of the certification process is evidence of LOT’s commitment to the highest safety standards. - Why is the IATA CEIV Lithium Batteries certification so important? The third decade of the 21st century has been marked by the rapid advancement of electronic devices, their miniaturisation and widespread use. If not for the lithium-ion energy sources, this would not have been possible. This type of battery is used in mobile devices, small electronics, tablets, electric vehicles, and power tools. Some of them, for example, phones, laptops, or electric wheelchairs are brought on board the aircraft. This also extends to equipment used by airlines, including satellite phones, location devices and terminals for cashless transactions. “At LOT Polish Airlines, we have been consistent in establishing the highest competences in quality and safety. As a modern airline who has obtained the CEIV Lithium Batteries certification, we confirm that we maintain global standards in operations. Our continued drive is to gradually respond to the rapidly evolving market conditions. By the end of this year, we hope to complete our procedures and training to include the top level of competences in the transportation of perishable goods. This is how we intend to prove that we are compliant with all available global IATA standards and strengthen our position in the market”, says Michał Grochowski, director of LOT Polish Airlines’ Cargo and Mail Department. - What is the IATA CEIV Lithium Batteries certification? The underlying regulations for transporting batteries or their components are set forth in the IATA DGR (dangerous goods regulations). The Center of Excellence for Independent Validators program, on the other hand, brings the required standard of training, procedures implemented and regulations followed to a higher level. Certified carriers are compelled to substantially advance their operating procedures, as well as take extreme care of the competences of all personnel involved in the processes, including the need for all subcontractors to monitor and comply with CEIV standards. The fact that an airline holds this certification affects both its efficiency, safety and costs. At the same time, it represents the top-level competence in terms of awareness and maintenance of standards towards each of the commodity groups concerned. - Rules for obtaining the certification Before obtaining the certification, there is a stringent certification process involving a thorough audit of all processes involved in the transport of specialised cargo. One of its prerequisites includes mandatory training for crew – Logistics Safety Management – in the transport of lithium-ion batteries. The certification is valid for two years, and its renewal entails a crew course updated with the new standards, verification of passenger and cargo procedures as well as a final audit. The compliance with the rigorous requirements of IATA, a leader in setting quality and safety standards in air transport, guarantees passengers and customers a high level of service in both passenger and cargo transport, where LOT Polish Airlines is the undisputed leader. In the cargo and mail sector, LOT Cargo is also a leading carrier in Central and Eastern Europe. The carrier has succeeded in acquiring certification and expertise in the transport of pharmaceuticals (CEIV Pharma), as well as the highest requirements in the execution of special material transports. The LOT Cargo Academy also delivers commercial training in the market in both ranges, as well as expert cargo training for freight forwarders.
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First E-Jet converted to transport cargo aircraft makes its debut
The first E190F, a converted jet from passenger transport to freighter (E-Freighter), has successfully completed its first flight today in São José dos Campos, Brazil. The Embraer team flew the E-Freighter jet for around two hours, carrying out a complete evaluation of the aircraft, which will continue testing before entering operation. The aircraft belongs to Regional One, a leasing company from the United States. “The E-Freighter program opens a new business opportunity for Embraer, meeting e-commerce’s growing global demand for cargo transport and matching the high-tech E-Jets family to an unbeatable operational performance,” says Francisco Gomes Neto, President and CEO of Embraer. “We are very pleased with E190F’s and E195F’s fast progress during the testing period. These jets will be important tools for our customers and allow them to work with more agile and decentralized deliveries.” The first flight is part of a series of evaluations that Embraer is conducting before the E-Freighter jets enter into operation. The aircraft has already been successful in both ground pressurization and cargo loading tests. E-Jets converted to freighters will have over 50% more volume capacity, three times the range of large cargo turboprops, and up to 30% lower operating costs than narrowbodies. If combining capacity under the floor and main deck, the maximum structural payload is 13,500 kg for the E190F and 14,300 kg for the E195F. Launched in 2022, the E190F and E195F Passenger to Freight Conversions (P2F) program involved a global network of more than 40 suppliers and more than 600 employees that dedicated more than half a million hours to the E-Freighter.
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Brazilian Navy and Embraer sign innovation partnership agreement
The Brazilian Navy and Embraer have signed a partnership agreement for mutual support in research, development and innovation. The cooperation aims to develop on-board Surface Search and Coastal Surveillance Radars, with an increase in the maturity of the Gaivota X Radar. The signing ceremony took place today during LAAD in São Paulo, Brazil. Rear Admiral Alexandre de Vasconcelos Siciliano said: "We are proud to partner again with Embraer. This agreement consolidates the continuity of a long-term collaboration with a global technology leader that will expand the range of capabilities for the Brazilian Navy to fulfill its missions. Our expertise in the Gaivota X Radar will be complemented by Embraer's cutting-edge technologies and advanced capabilities, allowing us to share knowledge and cooperatively develop cutting-edge solutions for the global market." "We are very pleased to sign this new agreement with the Brazilian Navy, an institution with which we have a solid, long-term relationship. This cooperation will bring many advances, not only for the Brazilian Navy and Embraer but also for the Brazilian Defense Industrial Base," says Fábio Caparica, Vice President Business Development, Latin America, at Embraer Defense & Security. Studies by the Brazilian Navy and Embraer cover the integration of the Gaivota X Radar with the Georeferenced Command and Control System (SisC2Geo) and with the Unified Situational Awareness System for Maritime Information Acquisition (SCUA). The cooperation is an important contribution to increasing both the high technological content of the Navy's Strategic Programs and the development of the Defense Industrial Base, one of the main objectives of the Brazilian National Defense Strategy.
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Airbus to acquire INFODAS and strengthen its cybersecurity portfolio
Airbus Defence and Space has entered into an agreement to acquire INFODAS, a Cologne-based, German company that provides cybersecurity and IT solutions in the public sector including for defence and critical infrastructures. The transaction is subject to the customary regulatory approvals and is expected to be finalised before the end of 2024. This acquisition supports Airbus’ strategic ambition to strengthen its cybersecurity portfolio for the benefit of its European and global customers. With exponential cyber threats, along with the increasing digitalisation and connectivity of its products and systems, cybersecurity is a pivotal component of Airbus’ development. Over the last years, the group has continuously developed its cybersecurity capabilities and expertise, ensuring the best possible protection for its products, operations, customers, and ecosystem, including major programmes such as the Future Combat Air System (FCAS). INFODAS is a company with around 250 employees and annual revenues of about 50 million euros. Besides its headquarters in Cologne, INFODAS has additional offices in Germany in Berlin, Bonn, Hamburg, Munich and Mainz. The company has been certified by the Federal Office for Information Security (BSI) as an IT security service provider in the areas of information system auditing, consulting and penetration tests. The INFODAS’ SDoT Security Gateway product family is approved for classification levels up to secret. The products are also certified in accordance with Common Criteria and have other country-specific certificates.
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Embraer’s E2 Cleared For ETOPS-120 Operations
Embraer has secured 120 minute extended twin-engine operations (ETOPS) approval for the E190-E2 and E195-E2 from the Brazil’s Civil Aviation Authority ANAC (Agência Nacional de Aviação Civil), FAA (Federal Aviation Administration), and EASA (European Union Aviation Safety Agency). This capability paves the way for E2 operators to fly direct non-limiting routes over water and other remote areas, saving both time and fuel. The granting of ETOPS-120 capability is testimony to the aircraft’s design and to the maturity of the systems; ETOPS certification requires the fleet of aircraft in operation to reach cumulative flying hour milestones. ETOPS certification for the E2 comes later than expected due to the global pandemic which significantly reduced aircraft operations, slowing down the accumulation of flying hours required. Arjan Meijer, President and CEO Embraer Commercial Aviation, said, “ETOPS is an important additional capability for the E2, and a key enabler for more sales, especially in Asia Pacific. Airlines flying routes with up to 120 minute diversion time will be able to use straighter, quicker and more fuel efficient routes, and have access to more diversion airports. ETOPS capability is a further optimisation of the E2, already the most fuel efficient aircraft in its segment.”
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LOT Polish Airlines have launched a new route to Uzbekistan
The first scheduled LOT Polish Airlines flight to Tashkent took off on March 13th at 10:55 p.m. The opening ceremony at Warsaw Chopin Airport was attended by Michał Fijoł, the President of the Management Board of LOT Polish Airlines, Bożena Żelazowska, Secretary of State at the Ministry of Culture and National Heritage, Amirsaid Agzamkhodjaev, Ambassador of Uzbekistan in Poland, Łukasz Chaberski, acting President of the Management Board of Polskie Porty Lotnicze, and the crew and passengers of the first flight. LOT Polish Airlines Boeing 737 MAX 8 landed in the capital city of Uzbekistan the next day a few minutes after 9 a.m. local time. - Today, we are launching another LOT Polish Airlines connection - to Uzbekistan. It is one of the most intriguing countries in the world, which has a lot to offer to passengers from Poland and Europe. The attractions of the Silk Route and the legendary landmarks of Samarkand, Khiva or Bukhara are yet another unique spots on the map of the world, which are available to travellers in the LOT Polish Airlines route network. I am also convinced that the possibility of comfortably reaching the heart of Central Asia onboard our aircraft will generate the potential for further development of tourism and economic cooperation between Poland and Uzbekistan, said the President of the Management Board of LOT Polish Airlines, Michał Fijoł during the opening ceremony. - We have launched our connection having the citizens of Uzbekistan in mind as well. From Chopin Airport, which is a convenient hub, a person travelling from Tashkent can reach nearly 80 cities in Europe and North America, which are available in our route network, he added. Flights between Warsaw and Tashkent are scheduled for Wednesdays, Fridays and Sundays. LOT Polish Airlines Boeing 737 MAX 8 coming back to Warsaw are scheduled for Mondays, Thursdays and Saturdays. In April and May, the Polish carrier will launch an additional rotation on this route on Tuesdays, with a return to Warsaw scheduled on Wednesdays. Uzbekistan, with its history spanning over 2,700 years, including the boom taking place in the era of the Silk Route, is a country that dazzles with its landmarks, culture and tradition. With its monumental and lavish castles, majestic mosques and strongholds, and its location among deserts and oases, it is dubbed the touristic gem of Central Asia. The introduction of the visa-waiver program for citizens of 45 countries (including Poland) in 2019 has brought a considerable increase in the number of foreigners coming to Tashkent and other cities in Uzbekistan – from 2.7 million in 2017 to 5 million in 2023. With its modern resort hotels and high-speed trains connecting the largest cities, Uzbekistan is among the top countries with the most dynamically developing tourism industry according to the World Tourism Organization. According to the “Uzbekistan 2030” strategy, the number of foreign tourists is to increase up to 15 million. Apart from connections to Athens and Riyadh, Tashkent is yet another destination provided for in the LOT Polish Airlines’ development strategy for 2024-2028. By planning the expansion of the route network to include 20 new connections, the Polish carrier wants to be the first choice and a partner for passengers looking for new travel ideas. Tickets to Uzbekistan are now available at lot.com, at the LOT Contact Center, at LOT Travel offices and via our agents’ sales channels.
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Embraer Defense & Security and ST Engineering to boost cooperation across APAC and South America
Embraer Defense & Security today announced an agreement with ST Engineering to jointly explore alternatives for future collaboration in key identified areas such as engineering, maintenance and support service activities for the C-390 Millennium multi-mission transport aircraft in the Asia Pacific region. In addition, both companies will cooperate on products and services including radars and land systems, C4ISTAR, border security, simulation and advanced production methodologies which will support ST Engineering’s portfolio of capabilities in South America. The cooperation is based on a Memorandum of Understanding (MoU) signed in February during the Singapore Airshow 2024 and reinforces Embraer’s growing presence in the aerospace and defense ecosystem through strategic partnerships. “We see strong synergies between ST Engineering’s capabilities in defense and the MRO sector and Embraer Defense & Security’s complete line of integrated solutions and we look forward to fostering stronger ties with ST Engineering,” said Bosco da Costa Junior, President & CEO, Embraer Defense & Security. “The C-390 Millennium is a flagship product for Embraer Defense & Security, and it received a lot of attention at the recent Singapore Airshow. We look forward to growing our customer base in the region.” The C-390 can carry more payload (26 tons) compared to other medium-sized military transport aircraft and flies faster (470 knots) and farther. It is capable of performing a wide range of missions such as transporting and dropping cargo and troops, medical evacuation, search and rescue, firefighting, and humanitarian missions, operating on temporary or unpaved runways such as packed earth, soil, and gravel. The aircraft has been selected by South Korea, Czech Republic, Austria, the Netherlands, Portugal and Brazil. The current fleet of aircraft in operation has accumulated more than 11,500 flight hours, with operational availability of around 80% and mission completion rates above 99%, demonstrating exceptional productivity in the category. ST Engineering’s defense capabilities cover a wide range of solutions from engineering aircraft and avionics upgrades, to designing and building proven battlefield mobility platforms, soldier systems, ammunition and naval vessels. As an authorized service center for several OEMs, ST Engineering’s Defense Aerospace business provides a comprehensive range of maintenance support and solutions including aircraft modernization for global customers, supporting platforms from combat fighters to transport and trainer aircraft, as well as helicopters.
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Eve Air Mobility Sponsors and Joins Airspace World to Debate the Introduction and Growth of the UAM Industry
Eve Air Mobility is excited to announce its second appearance at Airspace World, one of the world's largest and most influential airspace and near-space management events. As a platinum sponsor, Eve will present a combination of panels, activations, and exclusive insights. Rob Weaver, Eve's Urban ATM Global Business Development Lead, will represent the company in various speaking opportunities to discuss the introduction and growth of AAM, including topics such as safety, operation, airspace, and infrastructure readiness, as well as Eve’s latest updates in developing urban ATM services and technology to support Day 1 Urban Air Mobility (UAM) operations. [Exclusive Demo with NATS] NATS will present a demonstration illustrating the seamless and safe integration of eVTOL operations into bustling airport environments. Eve, among others, has collaborated with NATS’ new concept of operations that will highlight how eVTOL operators can digitally submit flight plans, how they can be seamlessly approved or amended by an air navigation service provider (ANSP) via a new Airspace Manager function, and how digital tower technology can allow controllers to safely track and monitor every flight within their operation. The demo will be showcased at NATS’ stand during the event. [Panels with Eve] Traffic Management Services to Support AQAM Entry Into Service Date: Tuesday, 19 March Time: 10:30 am - 11:20 am Location: Wing Theatre Speaker: Rob Weaver – Urban ATM Global Business Development Lead AAM Vision Panel- Scaling Up Operations Date: Tuesday, 19 March Time: 3:00 pm - 3:50 pm Location: Wing Theatre Speakers: Rob Weaver – Urban ATM Global Business Development Lead at Eve Air Mobility & other UAM Industry Leaders Digitising Operations to Enable the Growth of UAM Traffic Management Date: Wednesday, 20 March Time: 10:30 am - 10:55 am Location: Wing Theatre Speakers: Rob Weaver – Urban ATM Global Business Development Lead at Eve Air Mobility & Mark Balsdon - Head of New Airspace Users Business Development and Account Management at NATS
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Embraer-X announces partnership with Greentown Labs, the largest climatetech incubator in North America
Embraer-X and Greentown Labs today announced a new partnership focused on mobilizing climate solutions and accelerating the future of sustainable aviation. The announcement was made during a series of panels featuring industry leaders at South by Southwest (SXSW) 2024, a premier event for creativity and innovation. Greentown, the largest climatetech incubator in North America, shares the same sustainability principles as Embraer-X and aims to catalyze climate solutions through entrepreneurship, partnership, and collaboration. Through Greentown and Embraer-X’s Megawatt Partnership, Embraer-X will have the opportunity to engage deeply with the incubator’s more than 200 startups and will gain access to curated, customized events. “We are continuously expanding our global open innovation initiatives, and partnering with Greentown Labs represents another important step in the aviation industry’s collaborative effort to connect people willing to forge new paths that positively impact our world,” said Daniel Moczydlower, CEO of Embraer-X. Acting as a market accelerator, Embraer-X has access to novel businesses and innovative solutions, and promotes collaboration with innovation hubs, co-investors, and partners in alignment with aviation industry goals and objectives. "Greentown is thrilled to partner with Embraer-X, which is on the leading edge of reducing aviation emissions, which represent both a major climate challenge and opportunity for innovation," said Greentown CEO and President Kevin Knobloch. "We look forward to Embraer-X engaging with our startups that are developing solutions for sustainable aviation—and to the positive results that come from those exciting collaborations." Based in Somerville, Massachusetts, and Houston, Texas, Greentown convenes and connects the climatetech ecosystem—including startups, corporate leaders, investors, and others—to rapidly scale climate technologies.
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Lufthansa Group generates operating profit of 2.7 billion euros in 2023 and invests more than ever for its customers
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, says: "The Lufthansa Group has regained its financial strength. I would like to thank our customers for their continued loyalty and each and every one of our approximately 100,000 employees. With their above-average commitment, they made 2023 one of the three best years in Lufthansa Group's history. This success benefits everyone. We want to pay our shareholders a dividend for the first time since 2019. We are also giving our employees a share in our good results development through significantly above-average collective wage agreements and profit-sharings. And this year, we also aim to finally return our customers' satisfaction to premium levels. That is why we are investing the record amount of 4.5 billion euros in new aircraft, in our cabin interiors, lounges, ground processes and in personal and digital services. As part of the largest fleet modernization in our history, we expect to take delivery of at least 30 new aircraft this year, including around 20 long-haul jets for Lufthansa - another record!” Result 2023 In the financial year 2023, the Lufthansa Group generated the third-best financial result in its history due to the continued high demand for air travel and another record result at Lufthansa Technik. Revenue increased to 35.4 billion euros (previous year: 30.9 billion euros). Operating profit, measured as Adjusted EBIT, rose to 2.7 billion euros (previous year: 1.5 billion euros). The Adjusted EBIT margin improved accordingly to 7.6 percent (previous year: 4.9 percent). The company more than doubled its net profit to 1.7 billion euros (previous year: 790 million euros). The return on capital employed (Adjusted ROCE) rose by 5.5 percentage points to 13.1 percent (previous year: 7.6 percent). Adjusted ROCE thereby exceeded the 2024 target value of ten percent already one year ahead of time. Passenger numbers and traffic development The desire to travel remained high last year. Demand for tickets rose once again. In 2023, a total of 123 million passengers travelled with the airlines of the Lufthansa Group, an increase of 20 percent compared to the previous year (2022: 102 million). The Lufthansa Group airlines increased the number of flights offered by 14 percent to 946,000. The number of seats on offer was gradually expanded over the course of the year. On average, the airlines offered 84 percent of 2019 capacity last year. The seat load factor improved by 3.1 percentage points to around 83 percent, returning to pre-crisis levels. The company’s top priority in capacity planning was to ensure stable flight operations and the associated improvement in the customer experience. 98 percent of all flights were able to take place as planned. As a result of the required buffers in the system, however, productivity was significantly below the pre-crisis level of 2019, particularly at the core Lufthansa brand. Passenger airlines with profit The high demand and increased capacity led to significant revenue growth at the passenger airlines. Revenue rose to 28.3 billion euros in the 2023 financial year (previous year: 22.8 billion euros). Yields continued to develop positively and were around six percent higher than in the previous year. The increase was mainly driven by the continued strong demand in the leisure travel segment, particularly in the premium classes and during the record travel summer. Business travel continued to recover at a slower pace. Despite high cost inflation, Adjusted EBIT of the passenger airlines segment improved significantly in the past financial year. At 2.0 billion euros (previous year: -300 million euros), it was once again clearly positive. For the first time, all passenger airlines in the Group reported an operating profit. SWISS, Austrian Airlines, Brussels Airlines and Eurowings all achieved record results. Lufthansa Technik with record result, logistics result normalizes Demand for maintenance, overhaul and repair services and other Lufthansa Technik products remained high in the financial year 2023. Despite strained supply chains and rising material and personnel costs, Lufthansa Technik once again generated a record result in 2023. The operating profit for the past financial year amounted to 628 million euros (previous year: 554 million euros). With its “Ambition 2030” growth plan, Lufthansa Technik is planning extensive investments in the expansion of its core business, the expansion of its global locations and the expansion of digital business models for the coming years. Following some exceptional record years, demand for air freight has mostly normalized in 2023. Lufthansa Cargo's capacity increased by seven percent compared to the previous year, primarily due to the further recovery in passenger air traffic and the associated expansion of cargo capacity on passenger aircraft. Lufthansa Cargo generated Adjusted EBIT of 219 euros million in the financial year (previous year: 1.6 billion euros), which corresponds to a persistently strong operating margin of 7.4 percent. Strong Adjusted Free Cashflow further reduces net debt To ensure the company's long-term ability to invest and further reduce debt, the focus in the 2023 financial year was once again on the generation of a strong cash flow. Due to the good operating result, increasing bookings and strict management of receivables and liabilities, operating cashflow amounted to 4.9 billion euros (previous year: 5.2 billion euros). The previous year's figure included one-off effects resulting from the sharp ramp-up in demand after the end of the coronavirus restrictions. The Lufthansa Group's net capital expenditure rose by 23 percent year-on-year to 2.8 billion euros in 2023. The largest share of this was attributable to the modernization of the fleet through the purchase of new, fuel-efficient aircraft. Overall, the company generated an Adjusted Free Cashflow of 1.8 billion euros (previous year: 2.5 billion euros). This is the third highest free cashflow in the history of the Lufthansa Group. Due to the positive free cashflow, net debt fell significantly to 5.7 billion euros (previous year: 6.9 billion euros) and was thereby around 1 billion euros below the pre-crisis level. Net pension obligations increased by 683 million euros to 2.7 billion euros (December 31, 2022: 2.0 billion euros) due to a 60 basis point decrease in the discount rate. Equity increased to 9.7 billion euros as of December 31, 2023 (previous year: 8.5 billion euros). At 1.7, the leverage ratio, defined as the sum of net debt and net pension liabilities in relation to Adjusted EBITDA, was again significantly lower than the previous year's figure of 2.3. The Lufthansa Group's balance sheet strength was also recognized by global rating agencies. For the first time since the pandemic and as the only European network Airline Group, the Lufthansa Group is now again consistently rated investment grade by all four agencies in the market. Shareholders to participate in profits For the first time since the coronavirus pandemic, shareholders are to participate directly in the company's strong earnings again. The Executive Board and Supervisory Board will propose a dividend of 0.30 euros per share for the 2023 financial year at the Annual General Meeting on May 7, 2024. This corresponds to a dividend yield of around four percent on the year-end share price. The proposed payout follows the Lufthansa Group's dividend policy of distributing between 20 and 40 percent of the Group’s profit to shareholders. Remco Steenbergen, Chief Financial Officer of Deutsche Lufthansa AG: "The strong result for the financial year 2023 is another important step in positioning the Lufthansa Group for the future. Our solid balance sheet and strong free cash flow enable us to make the necessary investments in our fleet and our product. I am convinced that these investments will pay off - for our customers, but also for our shareholders. Over the past three years, I have had the privilege of supporting the company in overcoming the crisis and putting the Group back on a solid financial footing. The Lufthansa Group has set itself the goal of continuing to pursue the path of profitable growth in order to increase the operating margin in the long term and continue to create value in the future. I am particularly pleased that we can once again allow our shareholders to participate in our success by resuming dividend payments." Record investments on the customer side The Lufthansa Group’s customers will also benefit to a large extent from the financially successful year 2023. In 2024, the Lufthansa Group will invest a record sum of around 4.5 billion euros in new aircraft, new seats, lounges, improved culinary and digital offerings in order to significantly increase customer satisfaction. With the new "Allegris" cabins at Lufthansa, and "SWISS Senses" at SWISS, the Lufthansa Group airlines are setting new standards. Lufthansa guests will be able to experience the new features for the first time in May, initially on the connection from Munich to Vancouver (Canada). The focus remains on operational stability, punctuality and improved customer communication. To achieve this, a major service offensive was launched across all passenger airlines in the Group at the beginning of the year. Record for aircraft deliveries The Lufthansa Group is currently undergoing the largest fleet modernization in its history. In 2024, the company will again take delivery of more than 30 new aircraft, including around 20 long-haul jets. A double-digit number of Boeing 787-9 "Dreamliners", eight Airbus A350-900s and one Boeing 777 freighter will be delivered to the company. All these long-haul aircraft will fly for Lufthansa Airlines and Lufthansa Cargo. Never before in our history have we been expecting the delivery of so many new long-haul aircraft for Lufthansa in just one year. In total, the Lufthansa Group currently has over 250 latest generation aircraft on its order list - another record. In the medium term, the modernization will lead to the decommissioning of older sub-fleets, leading to a significant increase in customer comfort as well as a sustainable reduction in CO2 emissions. The significantly more fuel-efficient aircraft consume up to 30 percent less kerosene compared to their respective predecessor models and emit correspondingly less CO2. Lufthansa Group gives employees a share in the company's success With above-average collective wage agreements and variable remuneration, the Lufthansa Group also allows its employees to participate in the positive development of the company's results. Since mid-2022, the company has increased the remuneration of the professional groups at Deutsche Lufthansa AG by over 10 percent. For the past year, the company is paying Lufthansa Group employees profit-sharing payments agreed with the social partners amounting to over half a billion euros. Over 13,000 employees were recruited last year and a further 13,000 recruitments are planned for the current year. Dr. Michael Niggemann, Chief Human Resources Officer and Labor Director of Deutsche Lufthansa AG: "We are proud to be one of the best employers in the industry and want to remain so. Our employees perform exceptionally well every day. That's why we let them share in our economic success. We have significantly increased remuneration since mid-2022. The offers we have made in the current collective bargaining round are also above average. However, they naturally also take our economic performance into account. We face fierce international competition and need economic success - not only for good employment conditions, but also to invest in more fuel-efficient aircraft, new seats and cabin interiors or digital services, for example. We want to grow. However, this is only possible if we are competitive overall and also in terms of labor costs. The uncompromising strikes by the trade union Verdi are damaging our guests, the company and ultimately our employees. We are always open to short-term negotiations with Verdi - however, we bear joint responsibility for finding good solutions. Verdi must suspend strike action and be prepared to enter into constructive negotiations without preconditions." Outlook The Lufthansa Group expects a continued increase in the demand for flight tickets in the current year. Already now demand is high, especially for flights during the Easter and summer vacation periods. Despite the increase in capacity, the load factors booked for the next three months are above last year’s level. The most popular destinations are Spain, Italy, Greece, and other Mediterranean countries. The Lufthansa Group's passenger airlines also experience continued high demand for service to and from North America. Due to the strong demand, the Group is further expanding the capacity offer of its passenger airlines. However, also in 2024, the focus will remain on ensuring stable flight operations in order to further improve regularity and punctuality. For the full year, the Lufthansa Group anticipates an average capacity offer of around 94 percent compared to 2019. This corresponds to a year-on-year growth of around 12 percent. Lufthansa Group revenue is expected to increase significantly in the 2024 financial year. The unit revenues of the passenger airlines are expected to be stable or only slightly below the previous year level, while unit costs are expected to remain stable. Adjusted EBIT for the Passenger Airlines is therefore expected to be on par with the previous year, as is the operating result in the Logistics and MRO segments. The Group's operating result (Adjusted EBIT) is also expected to be on the same level as in 2023. The Group remains committed to its goal of generating a sustainable Adjusted EBIT margin of at least 8 percent. Adjusted free cash flow is forecasted to reach at least 1.5 billion euros. Net capex is expected to amount to 2.5 to 3 billion euros. Higher gross investments will be partly offset by inflows from sale-and-lease-back transactions. In line with the usual seasonality, results will be particularly strong in the second and third quarter of the year. In the first quarter, the Adjusted EBIT loss is expected to be higher than in the previous year, due to the impact of the strikes on earnings and a decline in profits in the Logistics division, which in the first quarter of the previous year still benefited considerably from the exceptionally strong development of the air freight market in connection with the coronavirus pandemic. Transformation into an airline group and internationalization remain focus The Lufthansa Group continues to systematically drive forward its transformation from an aviation group to a global airline group. The sale of the catering business (LSG Group) was completed at the end of October 2023. The company expects the sale of the payment specialist AirPlus to be completed in summer 2024. The Group is also expecting the EU Commission’s approval for an investment in the Italian airline ITA Airways over the course of this year. The Lufthansa Group is working closely and constructively with the EU Commission to achieve a swift conclusion and subsequent implementation of the transaction. With the planned investment in ITA Airways, the Lufthansa Group is driving forward the internationalization of the company in order to make better use of attractive growth opportunities abroad. More than 1 million Green Fare tickets sold The Lufthansa Group remains strongly committed to increasing the availability and use of Sustainable Aviation Fuel (SAF). Lufthansa was the first airline worldwide to start using SAF in regular flight operations back in 2011. In addition, the Lufthansa Group also intends to use innovative solutions for filtering CO2 from the air and storing it underground to offset unavoidable CO2 emissions. The company is expanding its technology partnerships in this area. Already today, the Lufthansa Group is a global leader in offers and services for more sustainable flying. More than one million Green Fares have already been sold on flights in Europe and to North Africa in the first year of the offer. The Lufthansa Group is currently also testing its Green Fares on selected long-haul flights. In addition, more and more corporate customers are taking advantage of the opportunity to offset flight-related CO2 emissions: In 2023, more than 1,500 companies worldwide invested in SAF with the Lufthansa Group. Further information Further information on the results of individual business segments will be published in the annual report. This will be published at the same time as this press release on March 7, 2024 at 7:00 a.m. CET at https://investor-relations.lufthansagroup.com/en/investor-relations.html The annual press conference will be streamed live at http://www.lufthansagroup.com from 9:30 a.m. CET. The analyst call will be streamed live at https://investor-relations.lufthansagroup.com/en/publications/financial-reports.html from 12:30 p.m. CET. The traffic figures for 2023 will also be published at 7:00 a.m. at https://investor-relations.lufthansagroup.com/en/publications/traffic-figures.html
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American Airlines Places Order for up to 133 Embraer Aircraft
Embraer (NYSE: ERJ; B3: EMBR3) has secured a major order for 133 aircraft from American Airlines Group Inc. (NASDAQ: AAL) to meet domestic demand in the United States. American has placed a firm order with Embraer for 90 E175s, with purchase rights for 43 additional jets. The aircraft will be delivered with 76 seats in American’s standard dual-class configuration. The deal, with all purchase rights exercised, is worth more than US$7bn at list price, and the firm orders will be included in Embraer’s 1Q24 backlog. The E175 is one of the most popular aircraft in the region, with 837 aircraft sold (including today’s firm order for 90) and 88% market share since 2013. “Over the past decade, we have invested heavily to modernize and simplify our fleet, which is the largest and youngest among U.S. network carriers,” said American’s CEO Robert Isom. “These orders will continue to fuel our fleet with newer, more efficient aircraft so we can continue to deliver the best network and record-setting operational reliability for our customers.” American is focused on bringing larger dual-class regional aircraft into its fleet, which will continue to drive connectivity from smaller markets to the rest of the airline’s global network. American expects to retire all of its 50-seat single-class regional jets by the end of the decade and will continue to serve small and medium-sized markets with larger regional jets. Dual-class regional jets are expected to make up American’s regional fleet once the new Embraer E175 deliveries are completed. Arjan Meijer, President and CEO Embraer Commercial Aviation, said, “The E175 is truly the backbone of the U.S. aviation network, connecting all corners of the country. One of the world’s most successful aircraft programs, the E175 was upgraded with a series of modifications that improved fuel burn by 6.5%. This modern, comfortable, reliable, and efficient aircraft continues to deliver the connectivity the U.S. depends on day after day. This represents American’s largest-ever single order of E175s, and we thank American for its continued trust in our products and people.”
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Embraer Spearheads Discussions on Innovation and Sustainability in Aviation at SXSW 2024
Embraer is set to host a series of panels featuring industry leaders at South by Southwest (SXSW) 2024, a premier event for creativity and innovation. The discussions will focus on the future of sustainable transportation and innovation in aviation. The festival is scheduled for March 11-16 in Austin, TX. As an organization well-positioned to continue leading the world in sustainability, disruptive innovation, and air mobility transformation, Embraer believes that SXSW offers an interactive stage to share values that drive forward-looking provocations. “Embraer’s active presence at SXSW promotes a series of interactive panels centered on the green aviation of the future and how organizations can successfully build a bright future without losing focus on current market needs,” said Dimas Tomelin, Senior Vice-President of Corporate Strategy, Digital and Innovation. Join us at The Line Hotel to be at the forefront of discussions on innovation as the cornerstone of future business growth: Tuesday, March 12 at The Line Hotel – Onyx Ball Room 10:00 – 11:00 a.m. · Topic: Can Aviation Really Go Green? How We Get There · Panelists: Cesar Pereira (Head of Sustainability at Commercial Aviation, Embraer), Andreas Aks (EX-CEO of Widerøe Zero and Independent Airline Consultant), Aisling Carlson (Senior Vice President of Partnerships, Greentown Labs), Kirsten Bartok Touw (Co-Founder and Managing Partner of New Vista Capital) 11:30 a.m. – 12:30 p.m. · Topic Pre-Flight Check: What Needs to Happen to Make eVTOL Flights a Reality? · Panelists: Liza Josias (Ecosystem Lead at Eve Air Mobility), Bryan Willows (Director, Americas – Advanced Air Mobility, Bristow Group), Daniel Moczydlower (President & CEO, Embraer-X, Head of Global Innovation Ecosystems, Embraer S.A.), Clint Harper (Advanced Air Mobility Expert & Community Advocate at Harper4D Solutions, LLC) 2:30-3:30 p.m. · Topic: Sustainable Transportation Meets the Climate Emergency · Panelists: Daniel Moczdylower (President & CEO, Embraer-X, Head of Global Innovation Ecosystems, Embraer S.A), Lukas Kaestner (Co-Founder and CCO Sustainable Aero Lab), Rosemary Cox Galhotra (Manager of Technology Management, Breakthrough Energy)
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Embraer-X highlights open innovation in a joint initiative with Sustainable Aero Lab
Embraer-X today announced a partnership with Hamburg-based Sustainable Aero Lab in a joint initiative to leverage open innovation in connection with global researchers, experienced entrepreneurs, founders, industry professionals and investors. The agreement highlights Embraer’s commitment to collaborate with the sustainable aviation of the future by exchanging experiences and investing in startup projects focused on energy transition for the air transport industry. “Sustainable Aero Lab has developed a key role in the global open innovation ecosystem, mentoring leading personalities. We want to combine synergies to inspire and accelerate new business opportunities, projects, and technologies that are creating the green future that moves each one of us,” said Daniel Moczydlower, CEO of Embraer-X. Stephan Uhrenbacher, Founder and CEO of Sustainable Aero Lab, said, “With the backing of Embraer-X, we will elevate our mentorship program for aviation startups to new heights. We are excited to work together on building a sustainable future of aviation, coordinating our support initiatives, and streamlining access to each other’s resources for startups, infrastructure, and expertise.” Sustainable Aero Lab shares the same vision as Embraer-X to make climate-neutral aviation a reality. The German innovation hub identifies and accelerates startups and projects around the world to deliver a tangible reduction of the climate footprint of aviation. This is achieved by bringing together startups with experienced mentors and investors in live sessions and one-to-one coaching, as well as opening doors and finding customers, new projects, and partners. Among other initiatives, Sustainable Aero Lab serves as a platform where it openly discusses and promotes zero-emission aviation technologies, including developments such as SAF and hydrogen.
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Embraer’s Phenom 300 leads the industry in twinjet deliveries and is the world’s best-selling light jet for 12 consecutive years
Embraer today announced its industry-leading Phenom 300 series has maintained its status as the world's best-selling light jet for 12 consecutive years, while also attaining the best-selling twinjet for the fourth year running, according to data released by the General Aviation Manufacturers Association (GAMA). To achieve this distinction, the company delivered 63 Phenom 300 series aircraft throughout 2023. Demonstrating Embraer’s commitment to innovation and excellence, the Phenom 300 series is the most successful business jet of the past decade, having accrued more than 730 deliveries worldwide and operating in 40 countries. With over 2 million flight hours logged, the Phenom 300 recently became the most-flown aircraft in the United States, with more than 360,000 flights in a 12-month period. “The Phenom 300 series continues to demonstrate Embraer’s commitment to delivering the ultimate experience in business aviation,” said Michael Amalfitano, President & CEO of Embraer Executive Jets. “For more than a decade, the aircraft has earned well-deserved recognition and continues to excel in terms of performance, technology, comfort, and support. With our ongoing dedication to our loyal customers, we will continue to develop the program based on customer feedback, industry trends, and new technologies.” Most recently, Embraer announced a new autothrottle feature that will be available for the Phenom 300E. The optional feature is set to enhance the already single-pilot-friendly cockpit, which includes the highly advanced Prodigy Touch based on Garmin G3000, further enhancing the aircraft’s operational capabilities. As the fastest light jet in production, the Phenom 300E has a high-speed cruise of 464 knots and a five-occupant range of 2,010 nautical miles (3,724 km) with NBAA IFR reserves. Additionally, the aircraft offers unmatched avionics, including a Runway Overrun Awareness and Alerting System (ROAAS)—the first to be developed and certified in business aviation—as well as Coupled Go-Around, Emergency Descent Mode (EDM), and more.
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Fokker Services Group, underway to becoming an Embraer Authorized Service Center
Fokker Services Asia (a subsidiary of Fokker Services Group) and Embraer announced today the signing of a Memorandum of Understanding. This MoU sets Fokker Services Group Asia’ facility in Seletar, Singapore on track to become an Authorized Service Center for Embraer’s first generation E-Jets family, supporting the steadily growing Embraer presence in the Asia Pacific region. The MoU paves the way for the certification of Fokker Services Asia as an Authorized Service Center of Embraer. The two companies intend to enter into a definitive agreement in the first half of 2024, as a result of which Fokker Services Asia will have the stamp of approval by Embraer to conduct maintenance services on the E-Jets first generation family. The announcement is timely for Fokker Services Asia, as the prospect of obtaining a certification from Embraer constitutes another milestone in its efforts to gear up its Asian facilities for the roll out of full Embraer MRO services, following the prior certification from CASA (Australia) in August 2023 for the E190 aircraft with Australian registration. "We are very pleased to partner with Fokker Services Asia to expand our MRO footprint in Asia. Embraer has been growing in the Asia-Pacific region during the last year and it is very important to keep expanding our capacity, capability, and footprint to bring value to our customers” says Frank Stevens, Vice President MRO Services, Embraer Services and Support. In parallel, Thomas Kennedy, Managing Director of Fokker Services Asia, expressed his satisfaction with this MOU by stating, “As an authorized service center and having certifications from key aviation regulatory entities in the region, we take pride in formally establishing a full new line of work for comprehensive aircraft maintenance for Embraer aircraft”.