Lufthansa Mulls Further Fleet Cuts That Might Benefit Boeing

The COVID-19 pandemic has made life extremely tough for airlines. Lufthansa (OTC: DLAKY) has been hit particularly hard. The largest European airline group was already less profitable than many of its American counterparts in recent years. Lufthansa is also heavily exposed to long-haul international travel (especially business travel), a market segment that is expected to recover very slowly.

As a result, Lufthansa announced earlier this year that it planned permanent reductions to its fleet size. The company now appears to be planning additional early aircraft retirements. This decision could be good news for Boeing (NYSE: BA) in the long run. Let's take a look.

Lufthansa Group consists of several European airlines, including Lufthansa, SWISS, Austrian Airlines, Eurowings, and Brussels Airlines. Together, they operated 763 aircraft as of the end of 2019.

Source Fool.com