Lufthansa CEO Carsten Spohr and its CFO Remco Steenbergen today revealed that premium economy is the carrier’s highest-earning cabin, surpassing business and first class. It’s good news for the German flag carrier, as through fleet retirements, the airline’s portion of business and first class seats has fallen.
A premium economy cabin can be a massive earner for long-haul airlines, and more and more of them are rolling out the cabin and investing in making it more attractive to carriers. Late last year, even Emirates joined the mix, rolling out its first-ever premium economy product onboard its newest A380 aircraft.
Lufthansa’s top earner
Earlier today, during Lufthansa’s Q1 results call, it was revealed just how vital the premium economy cabin is for Lufthansa. Remco Steenbergen, the CFO of Lufthansa, revealed,
“Premium economy has been introduced to all network airlines in the past few years. Its contribution per square meter is 39% higher than that of a business class seat.”
The airline’s CEO, Carsten Spohr, went on to add,
“Premium economy has been a great success. [It has] higher margins per square meter of square feet than business class, economy class, or first class… We see a lot more upgrades from economy to premium economy than downgrades from business to premium economy, which we of course want to avoid”
Why is premium economy so lucrative?
But why is premium economy such a good earner for airlines. The cabin is less dense than the economy cabin, and as such, has wider seats and more leg room. However, it’s not significantly less dense, as is the case in the typical business cabin.
Take Lufthansa’s Airbus A350, for example. The premium economy cabin seats around 21 passengers in roughly the same amount of space that the business cabin would seat eight. As more passengers can be attributed to each square meter of the cabin, more passengers are paying into each square meter of the cabin.
However, the beauty is in the soft product upgrade. Premium economy offers enough of any improvement from economy to make it attractive to consumers. However, the airline doesn’t spend significantly more on the services than in economy. Perhaps aluminum food trays and plastic cutlery will be replaced with ceramics and metal cutlery. Additionally, passengers may get an extra baggage allowance and perks on the ground.
However, the price point for passengers is quite a bit different. Let’s take Frankfurt to New York as an example. On June 30th, a one-way economy fare will set you back €368. Meanwhile, premium economy is currently selling at €938. Lufthansa isn’t spending nearly €600 to provide the premium economy service, meaning that a much more significant proportion of the revenue will be pure profit.
Have you flown in Lufthansa’s premium economy cabin? Did you realize it was worth so much to Lufthansa? Let us know what you think and why in the comments below!
Avelo Airlines adds new routes to Grand Junction and Medford
Avelo Airlines commenced service on May 9 between Los Angeles and Western Colorado.
Avelo will serve Grand Junction Regional Airport (GJT) and Hollywood Burbank Airport (BUR) .
Flight XP115 departs BUR at 4:20 p.m., arriving GJT at 7:15 p.m. local time; flight XP116 departs GJT at 7:55 p.m., arriving BUR at 9:00 p.m. local time*. The flight will be available four days per week on Sunday, Monday, Wednesday and Friday.
The route will be served by 189-seat Boeing 737-800 aircraft.
On the same day, the new carrier commenced service to Medford, Oregon.
Avelo will fly nonstop between Rogue Valley International-Medford Airport (MFR) and Hollywood Burbank Airport (BUR). On Tuesday, Thursday and Saturday, flight XP111 departs BUR at 4:20 p.m., arriving MFR at 6:10 p.m. local time; flight XP112 departs MFR at 6:50 p.m., arriving BUR at 8:50 p.m. local time. On Sunday, flight XP111 departs BUR at 11:10 a.m. arriving MFR at 1:00 p.m. local time; flight XP112 departs MFR at 1:40 p.m., arriving BUR at 3:40 p.m.
British Airways adds flights to holiday destinations
British Airways made this announcement:
Following the announcement that Britons are likely to be able to get a summer holiday this year after all, British Airways has added new services to holiday destinations for June and July onwards, saying the new services are in response to overwhelming interest from its customers.
The 26 additional weekly frequencies will include destinations across Greece, the Canary Islands and Turkey to popular holiday hot spots including Corfu, Kos, Paphos, Rhodes, Lanzarote, Tenerife and Bodrum.
Photo: Rhodes, Greece. British Airways.
The newly established flights to Greece and the Canary Islands will be available to book from Tuesday, May 11, 2021 for travel between June 21, 2021 and September 5, 2021 over the peak summer period. Bodrum in Turkey will also be available to fly to from July 18, 2021.
British Airways is currently flying to 27 short-haul destinations, including 112 holiday hotspots for the peak of the summer period.
Additional Summer 2021 Frequencies added:
- Heathrow – Lanzarote (ACE) +1pw, frequency growth from 5pw to 6pw
- Heathrow – Bodrum (BJV) +2pw, frequency growth from 1pw to 3pw
- Heathrow – Corfu (CFU) +3pw, frequency growth from 14pw to 17pw
- Heathrow – Chania (CHQ) +3pw, frequency growth from 6pw to 9pw
- Heathrow – Kefalonia (EFL) +2pw, frequency growth from 3pw to 5pw
- Heathrow – Heraklion (HER) +1pw, frequency growth from 9pw to 10pw
- Heathrow – Kos (KGS) + 2pw, frequency growth from 4pw to 6pw
- Heathrow – Kalamata (KLX) +2pw, frequency growth from 3pw to 5pw
- Heathrow – Paphos (PFO) +1pw, frequency growth from 7pw to 8pw
- Heathrow – Preveza (PVK) +2pw, frequency growth from 4pw to 6pw
- Heathrow – Rhodes (RHO) +2pw, frequency growth from 5pw to 7pw
- Heathrow – Thessaloniki (SKG) +3pw, frequency growth from 9pw to 12pw
- Heathrow – Tenerife (TFS) + 2pw, frequency growth from 13pw to 15pw
Voyager acquires majority control of XO Markets
Sign up here for GlobalData’s free bi-weekly Covid-19 report on the latest information your industry needs to know.
Voyager Space has completed the purchase of a majority interest in commercial space holding company XO Markets.
Revealed in December 2020, the transaction also includes XO Markets subsidiary Nanoracks. It involves the infusion of significant growth capital into the business.
The financial details of the deal remain undisclosed.
Nanoracks provides low-cost, high-quality solutions required for satellite deployment, along with basic and educational research in over 30 countries.
The company has already launched more than 1,000 projects to the International Space Station, as well as the Bishop Airlock on the SpaceX CRS-21 mission on SpaceX’s Falcon 9 rocket.
Nanoracks is also working on its long-term Space Outpost Program for private space platforms.
Voyager chairman and CEO Dylan Taylor said: “In the last year, the space industry has undergone a rapid evolution with demand for commercial space services reaching record highs.
“Innovative companies like Nanoracks are continuing to drive this transformation forward with first-of-their-kind technologies like the Bishop Airlock.
“We look forward to working with Jeffrey and his team as Nanoracks continues to push the envelope of what’s possible in the years to come while benefiting from the full support of our integrated model.”
Last month, Voyager completed the acquisition of The Launch Company, which specialises in the development of the systems, hardware, and processes to accelerate NewSpace companies to orbit.
In line with the NewSpace mission, Voyager recently inducted former Nasa administrator Jim Bridenstine to chair its advisory board.
Jazeera Airways Sees A Smaller Loss Than Last Year Despite COVID
On May 10th, Jazeera Airways released its earnings figures for the first quarter of 2021. With the ongoing health crisis and tight travel restrictions imposed by the Kuwait government, the airline is still facing losses. However, when compared to the first quarter of 2020, the airline experienced a smaller loss. This was achieved by trimming the airline’s workforce and operations, as well as the absence of a total ban, as was experienced in Kuwait the year prior.
First-quarter earnings for 2021
Announcing its figures yesterday, Jazeera Airways posted an operating revenue of KD8.1 million ($26.92 million).
When matching up operational revenue with operational expenses, the airline registered a net loss of KD5.2 million ($17.28 million). While not an insignificant figure, it does represent an improvement of 14% from the first quarter of 2020- which saw a net loss of KD6.0 million ($19.94 million).
One big change from a year ago was the difference in travel restrictions and the airline’s ability to adapt. In March of 2020, with the health crisis just emerging, most airlines were caught off-guard. The Kuwaiti government imposed a complete ban on all commercial traffic, allowing only cargo operations and specially arranged repatriation services. This time around, Jazeera Airways has had the chance to right-size its workforce and its operations.
Additionally, Kuwait now has a slightly less restrictive flight policy. Rather than a blanket ban on all traffic, commercial flights from 35 countries are suspended at Kuwait International Airport. Since February 7th, 2021, the government has also imposed an arrival capacity of 1,000 Kuwaiti nationals per day.
Passenger traffic numbers
The airline reports that the number of passengers flown during the quarter reached 104,116- which is down from 496,484 during the same period in 2020. This is due to ongoing restrictions at Kuwait International Airport (KWI).
The airline’s load factor was 58.4%, while its yield increased by 105.2% to KD74.9 ($249).
Jazeera Airways’ chairman credits some of its passenger traffic to connecting flights, as well as new destinations (with more on the way):
“While restrictions continued at Kuwait International Airport during the quarter, Jazeera focused on connecting flights, targeting underserved segments of passengers within its network, which accounted for 28% of total passengers. The airline also launched two new destinations and acquired six new traffic rights as it prepares to launch new routes in the summer season. Overall, Jazeera acquired the largest market share at KWI during the month of March despite limited capacity.” -Marwan Boodai, Jazeera Airways Chairman
Positive news during the first quarter
Indeed, the airline has had some positive news during the quarter. It launched two new routes to Colombo, Sri Lanka, and Addis Ababa, Ethiopia. “These routes serve a resilient demand for travel by expatriates in the region,” the airline states.
During the period, the airline also took delivery of its sixth Airbus A320neo aircraft. In total, four A320neos will be delivered over the course of 2021.
The airline expects restrictions at Kuwait International Airport to be lifted over the remainder of the year – particularly as vaccination rates improve.
The airline’s chairman concludes by saying that Jazeera is in a strong financial position with an experienced team. “The airline has a solid portfolio of travel rights, an efficient fleet, and a network that connects passengers from point to point,” he adds.
Have you flown with Jazeera Airways yet? Share your experience by leaving a comment.
Polystyrene Foam Market worth $32.2 billion by 2026 – Exclusive Report by MarketsandMarkets™
Launch of Crypto Trading Team by Goldman Sachs
What Happened To Lufthansa’s Boeing 707 Aircraft?
Apple is giving a laser company that builds some of its AR tech $410 million
How to Become a Cryptographer: A Complete Career Guide
JetBlue Hits Back At Eastern Airlines On Ecuador Flights
Cybersecurity Degrees in Massachusetts — Your Guide to Choosing a School
G20 TechSprint Initiative invites firm to tackle green finance
How To Unblock Gambling Websites?
Charted: Ripple (XRP) Turns Green, Here’s Why The Bulls Could Aim $2
DOGE Co-founder Reveals the Reasons Behind its Price Rise
Miten tekoälyä käytetään videopeleissä ja mitä tulevaisuudessa on odotettavissa
Bitcoin Has No Existential Threats, Says Michael Saylor
South America’s Largest E-Commerce Company Adds $7.8M Worth of Bitcoin to its Balance Sheet
U.S. and the U.K. Published Attack on IT Management Company SolarWinds
United Airlines Uses The Crisis To Diversify Latin American Network
This Dream Job Will Pay You to Gamble in Las Vegas on the Company’s Dime
“Privacy is a ‘Privilege’ that Users Ought to Cherish”: Elena Nadoliksi
The Spanish fintech Pecunpay strengthens its position as a leader in the issuance of corporate programs
Cardano (ADA) Staking Live on the US-Based Kraken Exchange
PR Newswire4 days ago
Polystyrene Foam Market worth $32.2 billion by 2026 – Exclusive Report by MarketsandMarkets™
Blockchain1 week ago
Munger ‘Anti-Bitcoin’ and Buffett ‘Annoyance’ Towards Crypto Industry
Blockchain1 week ago
Ethereum hits $3,000 for the first time, now larger than Bank of America
Aviation7 days ago
American Airlines Passenger Arrested After Alleged Crew Attack
Blockchain6 days ago
The Reason for Ethereum’s Recent Rally to ATH According to Changpeng Zhao
Gaming1 week ago
New Pokemon Snap: How To Unlock All Locations | Completion Guide
SPACS1 week ago
Deutsche Boerse expects 12 SPACs in Frankfurt in 2021
Blockchain5 days ago
Chiliz Price Prediction 2021-2025: $1.76 By the End of 2025
Nano Technology1 week ago
Less innocent than it looks: Hydrogen in hybrid perovskites: Researchers identify the defect that limits solar-cell performance
Business Insider1 week ago
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of BELLUS Health Inc. – BLU
Blockchain6 days ago
Mining Bitcoin: How to Mine Bitcoin
1 week ago