Deutsche Lufthansa AG is pursuing a new strategy to manage seasonal fluctuations in demand: Elastic capacity planning is intended to enable the group to respond more flexibly to changing market needs. A concrete example of this strategy can already be seen at Brussels Airlines.
The smallest network airline in the Lufthansa Group is strengthening its fleet and staff during the peak season of the 2025 summer season by deploying wet-lease aircraft and seasonal workers. These measures are intended to increase efficiency while ensuring that the increasing demand during the peak travel season can be adequately met.
Brussels Airlines as a test case: More aircraft and new staff
Brussels Airlines, the Belgian subsidiary of the Lufthansa Group, is leading the way in this new flexibility strategy. The airline will operate up to 2025 aircraft in its 50 summer schedule—six more than in summer 2024. This capacity increase is crucial to cope with the sharp rise in passenger volume during peak travel season.
The fleet expansion will be achieved through a combination of new acquisitions and external solutions. In addition to one new Airbus A320 and one new Airbus A330, four Airbus A220s from wet-lease partner Air Baltic will strengthen the Brussels Airlines network, the airline announced. A wet lease means that an aircraft, along with its crew (pilots and flight attendants), maintenance, and insurance, is leased from another airline. This allows airlines to increase capacity at short notice without having to buy or lease their own aircraft and hire staff. The lease of four A220s from Air Baltic demonstrates the close cooperation within the Lufthansa Group and with strategic partners. The Airbus A220 is known for its efficiency and comfort, making it a good addition to Brussels Airlines' short- and medium-haul network.
In parallel with the fleet expansion, Brussels Airlines has also significantly expanded its workforce. Since the beginning of the year, 300 new employees have been hired, including 153 flight attendants and 57 pilots. These new hires are necessary to support expanded flight operations and maintain service quality.
A notable innovation in the summer flight schedule is the first-ever deployment of 47 student cabin crew members . Brussels Airlines emphasized that these students "went through the same selection and training process as all other flight attendants." This is an innovative approach to bridging seasonal staffing gaps while simultaneously giving young talent the opportunity to gain initial experience in aviation. The use of seasonal workers is common in many service industries, and the application of this model in the highly regulated air transport sector demonstrates the airline's adaptability.
Group-wide strategy: elasticity against fluctuations in demand
Brussels Airlines' measures are part of a larger, group-wide strategy by the Lufthansa Group to increase flexibility in its operations. Seasonal fluctuations in demand are a well-known phenomenon in the aviation industry. Demand is traditionally high in the summer months and lower in the winter. However, this issue has been exacerbated by the global health crisis, particularly due to a decline in business travelers , who previously ensured a more stable base load factor during the off-season. Since the pandemic, business travel has shifted partly to digital platforms, leading to a greater concentration of demand during peak tourist seasons.
Lufthansa intends to counteract these shifts by increasing capacity in the summer and matching lower demand as precisely as possible in the winter. This means that airlines will have to respond even more flexibly to market changes in the future to avoid overcapacity during weaker periods while simultaneously preventing bottlenecks during peak times. This requires precise planning and the use of tools such as wet leases, seasonal staffing, and optimized fleet utilization.
The Lufthansa Group has already concluded a comprehensive framework agreement with Air Baltic . This agreement grants Lufthansa phased access to a total of 21 fully crewed Airbus A220-300 aircraft on a wet-lease basis . This is a key component of the new strategy. The A220 is a versatile aircraft well-suited to various short- and medium-haul networks and can be deployed flexibly. The ability to access a large number of aircraft and trained personnel through a wet-lease agreement provides the Lufthansa Group with significant operational flexibility.
Challenges and opportunities of flexible planning
Implementing flexible capacity planning brings with it both challenges and opportunities.
challenges:
- Human resources management: The use of seasonal and wet-lease staff requires careful coordination and training to ensure quality standards and safety requirements. Integrating external crews into your operations can be complex.
- Fleet coordination: The efficient use of own aircraft and wet-lease aircraft requires sophisticated planning to minimize empty flights and optimize capacity utilization.
- Cost management: Although wet leasing offers short-term flexibility, the cost per flight hour can be higher compared to operating your own aircraft. It's important to strike a balance between flexibility and cost-effectiveness.
- Market dynamics: Predicting demand fluctuations remains a challenge, especially in the face of unpredictable events such as geopolitical tensions or new health crises.
Opportunities:
- Increase in efficiency: By adjusting capacity to actual demand, airlines can reduce overcapacity and improve aircraft utilization, leading to higher profitability.
- Risk minimization: Flexible planning reduces the risk of excessive fixed costs in times of low demand, as fewer of the company's own aircraft and permanent staff are required.
- Competitiveness: The ability to respond quickly to market changes and create attractive offers can strengthen the airline's competitive position.
- Customer focus: Better adaptation to seasonal demand can lead to a more stable flight schedule and higher passenger satisfaction, as bottlenecks and delays can be reduced.
Other major airlines in Europe, such as Air France-KLM and IAG (International Airlines Group, which includes British Airways and Iberia), are also relying on flexible models to optimize their operations. The use of wet leasing is a proven method for responding to peak periods or compensating for temporary downtimes in their own fleet.
A flexible path to the future of aviation
The Lufthansa Group's strategy of elastic capacity planning, exemplified by Brussels Airlines, is a response to the increased fluctuations in demand in the aviation industry. Through the targeted use of wet-lease aircraft and seasonal personnel, the Group aims to increase its efficiency while ensuring service quality during the peak periods of the summer season. Although these measures also pose challenges, they provide Lufthansa with the flexibility it needs to respond to dynamic market conditions and maintain its position in global air traffic. It is a flexible approach that will shape the future of aviation in a constantly changing world.