Eurowings to prioritise short haul, point-to-point operations, break even target in 2021

    ufthansa Group provided (24-Jun-2019) an update to investors on further development of its airline strategy. A key element is a set of measures to realign Eurowings, which should become profitable “as swiftly as possible” and “sustainably generate value for shareholders”. Details include:

    • A “clear focus” on short haul and point-to-point operations at Eurowings;
    • Eurowings long haul transfer of commercial responsibility to network airlines by the end of 2020;
    • Less complexity and higher productivity through a reduction to one AOC in Germany by mid 2022;
    • Standardisation on the A320 Family by the end of 2022;
    • Increase crew and fleet productivity and reduction in external labour force until 1H2020;
    • 15% reduction in unit costs (CASK) to EUR 5.20 cents by 2022;
    • Overhead cost reduction of 30% between 2019 and 2022;
    • Focus on ancillary portfolio and digital sales channels to drive additional revenue streams;
    • Break even targeted in 2021;
    • Long term ambition to generate an adjusted EBIT margin of at least 7%. [more – original PR]