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Deutsche Lufthansa AG provides passenger and cargo air transportation services worldwide. The Company offers flight and connection programs in cooperation with Star Alliance airline partners from North America, Scandinavia, and Asia. Lufthansa also provides travel agency, catering, and aircraft maintenance services.
Lufthansa is one of the largest European airlines: Its primary traffic hub and main operations base is at the Frankfurt Airport. The oil price slump had a significant negative impact on LHA’s 2014 results due to its fuel hedging policy, which the company is expected to reduce for 2015 exercise. Operating margins should show a solid expansion given a lower fuel prices and the implementation of SCORE, the company’s efficiency program which focuses on IT outsourcing, a better premium offering, and a reduced offering in the point-to-point services (flight transfer to Germanwings. Additionally, its low-cost offering is expected to be extended to the long-haul offering via Eurowings brand offering. LHA is a founding member of Star Alliance (members include: Air Canada, Air China, Air India, Air New Zealand, Austrian, EgyptAir, LOT, Scandinavian Airlines, Singapore Airlines, South African Airways, Swiss, TAP, Thai, United, among others) which it uses a feeder for its long-haul flights.
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