Lufthansa’s Multi-Billion Euro Investment in Boeing and Airbus Jets

Summary

  • An agreement stipulates the delivery of 40 Boeing 737-8 MAX and 40 Airbus A220-300s jetliners in the timespan of 2026-2032.
  • Additionally, the deal comprises 120 future buying options for both Boeing and Airbus.
  • Lufthansa is set to finance this procurement through net investments worth 2.5-3 billion euros ($2.7-3.2 billion) in 2023 and a similar amount the following year.
  • This order is predicted to have negligible impact on capital expenditure in 2023-2024.
  • The conversion rate stands at $1 equivalent to 0.9148 euros.

Details of the Deal

The contract states that 40 units of Boeing 737-8 MAX and 40 units of Airbus A220-300s are programmed for delivery between 2026 and 2032.

In addition, the pact includes purchase options for a further 120 aircrafts from both Boeing and Airbus in the future.

Financial Implications

Lufthansa is strategizing to fund this acquisition through net investments projected between 2.5-3 billion euros ($2.7-3.2 billion) in 2023, and an equivalent monetary outline for the subsequent year.

This order is not anticipated to generate a significant influence on the capital expenditure during the period of 2023 to 2024, as per the given information.

The current currency conversion rate stands at $1 being equal to 0.9148 euros.

This transaction holds a potential influence on the Forex or trading sphere particularly favoring assets related to Boeing, Airbus, and Lufthansa. The transaction could direct future investments, create trading opportunities and indirectly affect currency exchange rates.

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