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    Stephen Furlong • Davy

    Stephen Furlong's questions to Deutsche Lufthansa AG (DLAKY) leadership

    Stephen Furlong's questions to Deutsche Lufthansa AG (DLAKY) leadership • Q1 2025

    Question

    Stephen Furlong asked for a high-level overview of the turnaround plan's impact timeline and sought clarification on the comment that a 10% decline in North Atlantic traffic could be offset by a EUR 600 million fuel tailwind.

    Answer

    CFO Till Streichert reiterated that the turnaround plan's benefits are building gradually, with operational stability being an early success, and confirmed growth plans for City Airlines. He clarified that the 10% revenue decline versus the fuel tailwind was a sensitivity analysis to illustrate the magnitude of potential offsets, not a forecast of current trends.

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    Stephen Furlong's questions to Deutsche Lufthansa AG (DLAKY) leadership • Q3 2024

    Question

    Stephen Furlong of Davy asked about the path to achieving the 8% adjusted EBIT margin target and the future geographical positioning of the business, questioning if it would become more west-facing or east-facing.

    Answer

    CEO Carsten Spohr stated that the group, excluding the core Lufthansa Airline, is already at or above the 8% margin target, and the turnaround program is essential for the core brand to reach that level. He projected the group will become more 'south-facing' by 2028-29 to leverage growth in the Southern Hemisphere and reduce seasonality, while the North Atlantic will remain a commercial backbone.

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    Stephen Furlong's questions to Ryanair Holdings PLC (RYAAY) leadership

    Stephen Furlong's questions to Ryanair Holdings PLC (RYAAY) leadership • Q1 2025

    Question

    Stephen Furlong of Davy inquired about the potential for European ATC performance to normalize by next summer and whether persistent industry cost inflation, combined with weak pricing, could lead to lower post-pandemic margins.

    Answer

    CEO Michael O'Leary described the European ATC situation as a "mess" that is worsening due to understaffing, expressing pessimism about near-term improvements. He acknowledged cost inflation but emphasized Ryanair's significant cost advantages, productivity gains from new aircraft, and its strategy to lead price discounting. O'Leary believes that over the medium term, constrained industry capacity will ultimately lead to higher airfares.

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    Stephen Furlong's questions to Air France KLM SA (AFLYY) leadership

    Stephen Furlong's questions to Air France KLM SA (AFLYY) leadership • Q1 2024

    Question

    Stephen Furlong from Davy asked for commentary on the European Commission's increasingly stringent view on airline M&A, sought confirmation on the repayment schedule for deferred social charges, and inquired about the long-term strategy for exiting hybrid capital instruments.

    Answer

    CEO Benjamin Smith stated that while European consolidation is necessary, deals like ITA/Lufthansa and IAG/Air Europa face significant hurdles, unlike the proposed SAS transaction. CFO Steven Zaat confirmed the deferred social charges stand at €1.6 billion, with annual payments of around €500 million. He added that the company plans to gradually pay off hybrid capital with normal debt after strengthening its equity through net results.

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