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Friday, April 30th, 2021

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Lufthansa Group reduces operating expenses by 51% and reduces operating loss

With global travel restrictions still being hampered by the COVIDF-19 pandemic, this has had a substantial effect on the business performance of Lufthansa Group in the first quarter of 2021. Carsten Spohr, CEO of Deutsche Lufthansa AG, commented that: "The longer the crisis lasts, the greater people's desire to travel again becomes. We know that bookings shoot up wherever restrictions are loosened, and travel becomes possible again. Given the foreseeable major advances in vaccination rates, we expect demand to rise sharply from the summer onwards. Encouraging signals, such as the announcement by the EU Commission that it will once again allow vaccinated passengers from the U.S.A. to travel to Europe, confirm our confidence.”

Group sales fell by 60% to €2.6 billion in the first quarter of the financial year (previous year: €6.4 billion). The previous year’s comparable quarter was only partially affected by the effects of the pandemic. Despite this, operating loss based on Adjusted EBIT was €1.1 billion, lower than in the previous year (previous year: minus €1.2 billion). Consolidated net income was minus €1.0 billion (previous year: minus €2.1 billion). At the end of the quarter, the Lufthansa Group had liquidity of €10.6 billion. This includes untapped funds of the governments' stabilization measures and loans amounting to around €5.4 billion.

In total, the airlines of the Lufthansa Group carried 3 million passengers in the first quarter of 2021, which was 10% of the pre-crisis level of the first quarter of 2019. The seat load factor was 45% or 33 points lower than in the first quarter of 2019. Lufthansa Cargo has benefited from the increased demand for cargo in the current climate, posting €802 million in sales for the quarter, a year-on-year increase of 45% compared to 2020. The freight load factor rose by 11.9 points to 75.7%. Adjusted EBIT improved accordingly to €314 million (previous year: minus €22 million), the highest ever in Lufthansa Cargo history. (€1.00 = US$1.20 at time of publication.)

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Rolls-Royce and DHL Express sign Totalcare® agreement for A330 engines

Rolls-Royce and DHL Express have signed a TotalCare® agreement for the Trent 700 engines that currently power the eight Airbus A330 freighter aircraft of the worldwide operating logistics company. The agreement will also cover any Trent 700 engines that are added to the DHL fleet in the future.

This agreement will give DHL a secured cost of operating and maintaining its Trent 700 engines through a dollar-per-flying-hour payment mechanism. It will also deliver enhanced aircraft availability thanks to Rolls-Royce's in-depth engine knowledge that draws on advanced engine health monitoring and on the 62 million flying hours the Trent 700 has accumulated over more than 25 years of operations.

The TotalCare agreement will ensure the continuity of aftermarket support at the lowest possible maintenance cost for the DHL fleet for decades into the future.

Faradair signs former Boeing, easyJet executives, Randy Tinseth and Tony Anderson to its Advisory Board

Faradair has announced the appointment of OEM and airline industry titans Randy Tinseth and Tony Anderson to help steer the company through its next phase of growth and continued development of the Bio Electric Hybrid Aircraft (BEHA).

Former Vice President Marketing for Boeing Commercial Airplanes, Tinseth becomes the new head of Faradair Aerospace Limited’s Advisory Board. Anderson, former easyJet executive and only the third employee at the famous low-cost carrier also joins the Board.

Between them, they bring a wealth of experience from leading companies in the commercial aircraft sector, providing valuable insight to Faradair’s future business model and growth. These appointments are announced ahead of imminent executive and engineering team announcements.

Headquartered at the Imperial War Museum Duxford’s historic Cambridgeshire airfield, Faradair is developing the 18-passenger/5-ton payload Bio Electric Hybrid Aircraft (BEHA). Optimized for hybrid power, it will employ a 1MW Honeywell turbogenerator, delivering electricity to a magniX electric propulsion unit.

Partnered with Cambridge Consultants, Gonville & Caius College, Honeywell, IWM Duxford, magniX, Nova Systems, prodrive, Swansea University and vwv, Faradair aims to manufacture and operate 300 aircraft by 2030, in a variety of roles including regional air transport, utility, and firefighting. A prototype is expected to fly in 2024.

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Embraer delivers 13 executive jets in first quarter 2021

Embraer has delivered nine commercial jets and 13 executive jets (ten light / three large) in the first quarter of 2021. The total company firm order backlog at the end of the first quarter was US$14.2 billion. Revenues reached US$807.3 million, representing year-over-year growth of 27.4% compared to the first quarter of 2020, with growth in the Commercial Aviation, Defense & Security, and Executive Aviation segments.

On April 23, the company signed a firm order for 30 E195-E2 jets with an undisclosed customer, with deliveries starting in 2022. The 30 firm orders will be included in Embraer’s second quarter backlog.

Excluding special items, adjusted EBIT and EBITDA were US$(29.6) million and US$18.0 million, respectively, yielding adjusted EBIT margin of -3.7% and adjusted EBITDA margin of 2.2%. Adjusted net loss (excluding special items and deferred income tax and social contribution) in the first quarter was US$(95.9) million.

The company finished the quarter with total cash of US$2.5 billion and net debt of US$1.9 billion. Due to continued uncertainty related to the COVID-19 pandemic and its impacts on the industry, Embraer has decided to not publish 2021 financial and delivery guidance at this point.

FAA awards STC for 321 Precision Conversions' A321-200PCF

321 Precision Conversions, a joint venture between Aircraft Transport Services Group (ATSG) and Precision Aircraft Solutions, has been awarded FAA Supplemental Type Certificate, Number ST02716SE, to the group’s new A321-200PCF freighter.

Precision Aircraft Solutions President Gary Warner said, “This major accomplishment, achieved during an unprecedented gobal pandemic, bears witness to the professionalism and dedication of all parties; our ATSG partners, our well-seasoned engineering and manufacturing professionals, and the dedicated men and women of the United States Federal Aviation Administration’s Seattle ACO.”

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MTU Aero Engines and Safran Aircraft Engines create EUMET to lead engine activities of the Next-Generation Fighter (NGF)

Europe’s Next-Generation Fighter (NGF) within the FCAS program takes a decisive step forward as MTU Aero Engines and Safran Aircraft Engines finalized their collaboration agreement by creating a 50/50 joint company. The new entity, called EUMET GmbH (derived from European Military Engine Team), will be based in Munich and will be headed by a Safran-nominated Chief Executive Officer.

EUMET will oversee the development, production and support of the engine to power the Next-Generation Fighter (NGF). The joint venture will be the sole contract partner for the participating nations in the engine program. On this basis, MTU Aero Engines and Safran Aircraft Engines are looking forward to involve the Spanish company ITP Aero in this challenging engine roadmap. ITP will be contracted as a main partner to EUMET. Through EUMET, the partners will be developing the technology and demonstrators for a best-in-class engine that will meet the evolving needs of European armed forces.

Within EUMET, Safran Aircraft Engines will lead the engine’s overall design and integration, while MTU Aero Engines will lead the engine service activities. ITP Aero will be fully integrated into the design of the engine and develop the low-pressure turbine and the nozzle amongst other items.
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