PR: Lufthansa Group continues the modernization of its short- and medium-haul fleet. The Supervisory Board of Deutsche Lufthansa AG has approved the exercise of options for 20 Boeing 737 MAX 10 aircraft. The rights were secured as part of a 2023 order for 40 Boeing 737 MAX 8 aircraft, which included a total of 60 purchase options for additional aircraft from the Boeing 737 MAX family.
Delivery of the newly ordered Boeing 737 MAX 10 aircraft is scheduled to begin in the early 2030s. By exercising the first 20 options, Lufthansa Group further strengthens its long-term capacity planning. The new aircraft are intended to gradually replace older Airbus A320 family aircraft across the Group.
The Boeing 737 MAX 10 is the largest member of the Boeing 737 MAX family and offers additional comfort for Lufthansa Group customers. It provides even greater seating capacity than the Boeing 737 MAX 8 already on order.
Compared to the older aircraft it is intended to replace, the Boeing 737 MAX 10 consumes around 30 percent less fuel. At the same time, its higher seating capacity reduces unit costs by approximately 20 percent. The new aircraft will therefore make an important contribution to reducing CO? emissions and further improving efficiency on European routes.
The order, with a list value of approximately USD 3.4 billion, forms part of Lufthansa Group’s ongoing fleet modernization program. By 2035, the airline group expects to take delivery of more than 250 new aircraft, continuing its investment in an efficient and sustainable fleet.
Notes:
- This is a timely move by Lufthansa. Its original order for 60 MAX options is firming. It also reflects growing confidence in the MAX 10 certification. Plus, it allows Lufthansa to spread its single-aisle OEM risk.
- Lufthansa launched the 737 in 1967. This order looks back to the earliest days of the 737 program.
- One aspect of the deal is the focus on upsizing, which we see in airlines’ and lessors’ focus on the A321.
- The drive is less about pilot pools and more about the limits airlines are starting to hit at airports. Not just slots, but gates. If gates and slots are limited, then upsizing to accommodate traffic growth is inevitable.
- Lufthansa mentions 30 percent less fuel and 20 percent lower unit costs – familiar numbers that we shared in our MAX analysis earlier today.
- With Lufthansa making this move, expect copycat orders. Lufthansa is a bellwether airline; if its rigorous internal analysis endorses the MAX 10, others will follow.
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