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FRANKFURT—German leisure airline Condor is considering whether to place additional aircraft orders now that its fleet renewal program is in full swing, the airline’s new CEO Peter Gerber said.
Condor has taken delivery of 17 Airbus A330-900s that have replaced all its Boeing 767-300ERs and A330-200s. Three more A330-900s will be following in the next two years; one of these is planned to arrive in November. In parallel, Condor has started renewing its narrowbody fleet with 41 A320/321neos. Five more A321neos and one A320neo are set to arrive before the end of 2024. The renewal exercise is to be completed by 2029, based on the current orders.
Gerber declined to give more details about his future plans, saying it was too early to discuss. However, his hint at the upcoming decision illustrates that the airline is looking at further growth. He also hinted that, beyond fleet considerations, Condor will have to decide whether it needs a strategic investor over time. “The airline business is about size, to stay alone for the long term is going to be difficult,” Gerber said.
Condor has a fleet of 52 aircraft; 17 of them are widebodies. The airline carried around eight million passengers in fiscal 2023 (ended Oct. 31, 2023) and expects up to 10 million in 2024. Gerber also believes the airline will be profitable again for the first time since the pandemic.
The airline took a double hit in 2019 and 2020 when its former parent Thomas Cook went bankrupt and shortly afterward the pandemic unfolded. Condor survived with significant state support largely in the form of repayable loans. In 2021, financial investor Attestor bought a 51% stake of the company, with 49% remaining in the hands of state bank KfW until all loans are paid back. Condor expects to have the state aid fully returned by 2025, according to schedule.
By that time, Attestor could take full control of the company. But the question remains how long it will hold on to its investment and when an opportunity for a strategic investor opens.
Meanwhile, Condor is working on creating more airline partnerships. The carrier already works with North American carriers Alaska Airlines and WestJet. Condor recently agreed to codesharing services with Emirates that include the Berlin-Dubai route it will start in October operating an A320neo. Emirates has been lobbying for access to Berlin for many years but is limited to four points in Germany by the bilateral air services agreement.
Emirates serves Frankfurt, Munich, Dusseldorf and Hamburg already.
As Condor takes more A330neos, it is also expanding its Asia network, which had been cut back in previous years. The airline will start flying to Bangkok and Phuket in Thailand as well as Hangzhou, China, in the fall. The transatlantic network will continue to be split between leisure destinations mainly in the Northern winter and more business travel markets in the summer.
The introduction of the A330neo means Condor’s business class capacity compared to the smaller 767s has grown by 44%, and premium economy is up 83% while regular economy capacity is only expanded by 7%. The aircraft’s relatively good cargo capabilities allow Condor to branch more into that market, too.
Gerber said that it can carry up to 17 tons of cargo on specific routes and is targeting higher value freight such as pharmaceuticals.
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