Why Luxair’s $1 billion investment in new aircraft could reshape regional air travel

What does summer 2025 look like for Luxair?

We have decided to focus on increasing capacity to existing destinations. Last year we introduced some new destinations, but this year we’re concentrating more on those that are in high demand.

Why the changed focus?

2025 is a year of transition for Luxair. We are preparing the ramp-up of our fleet for next year. We have ordered new aircraft, the first of which will arrive at the end of this year and the beginning of the next, although they will not be used commercially until 2026.

Meanwhile, we need to start training our pilots – and our cabin crew too – for these new aircraft. Three or four months’ training, which means that some pilots are not available and our workforce is limited. That’s why we’re also using larger-capacity aircraft. If you look at our last annual report, you will notice that our passenger numbers have increased while the number of flights has not.

Five years ago, we were what you might call a business airline with a few leisure flights. But everything changed after Covid. We now have a much higher proportion of holiday flights.

The business segment has been declining since 2019 in the order of 25 to 30%. For example, we used to have up to seven flights a day to London City. Now we’re moving towards five or six. In 2019, we were offering 65 destinations. Today, there are more than 90.

With two fewer destinations this year, are you still looking to expand?

Our ambition is to go even higher. Quite simply we no longer have any aircraft available. All our current fleet is being used to full capacity. We need bigger aircraft to enable us to grow without needing more pilots or more flights. Hence the strategy we have launched to replace our entire current fleet with larger-capacity aircraft.

How many aircraft does Luxair have and how many will you have in the future?

We have 21. And we have ordered 21 new aircraft: 12 from Boeing (four 737 Max 8s, four 737 Max 7s and two 737 Max 10s, plus two options) and nine from Embraer (six E195-E2s, plus three others as options). Deliveries will take place between 2026 and 2032 or 2033.

At present, we have a capacity of around three million seats a year. In the future, this will rise to four million.

How much is Luxair investing in these 21 aircraft?

Over a billion dollars, spread over six or seven years. That’s a colossal amount. Replacing its entire fleet in six years. And with new aircraft. Very few airlines are capable of doing that.

Apart from their greater capacity, what are the advantages of the new aircraft?

We need more sustainable, more environmentally-friendly aircraft. For ecological reasons, of course, but also for financial reasons. We have to cope with rising fuel costs, environmental taxes and so on. The Embraer and the Boeing Max 8 are two of the most sustainable aircraft on the market today. Their fuel consumption is 15 to 25% lower than our current aircraft. And they inevitably produce less CO2.

Not only that, they’re quieter too. Which could save us from penalties, as several airports are seriously considering introducing them for aircraft-related noise. Comfort is also a key factor for us, in order to differentiate ourselves from our competitors. And, in this respect, these new aircraft offer more: more legroom (2.5 cm), USB ports for charging phones in every seat, an entertainment service in every aircraft, interactive 3D maps, etc. All this will be available on all aircraft. This will be available on all aircraft, even for short flights like Luxembourg-London City.

Any long-haul flights on the horizon, for example to New York or the Caribbean from Luxembourg?

Not yet. At least not non-stop. There is too much competition in the transatlantic market. Too many airlines have this offer in their catalogue, via Paris, London, Frankfurt, Munich, Brussels, Zurich, Copenhagen, Amsterdam. On the other hand, we connect these American markets via partners.

What are your dreams for the future?

Our aim is to welcome more than three million passengers a year by the end of the decade. That would already be a great step forward. With our new aircraft, we can achieve great things. Our aim is to offer a total of between 90 and 105 destinations. We have identified certain targets within an eight-hour radius of Luxembourg. I’m dreaming, for example, of Helsinki, Edinburgh or Athens. Destinations that we would like to open up little by little.

Luxair CEO Gilles Feith recently said ticket prices are likely to go up. Why?

We have already adjusted our prices many times over the last few years. Simply because inflation was rampant. Everyone has noticed. Everything has gone up. Hotel prices, food, operating costs and so on. There are also the new costs associated with CO2 certificates and sustainable aviation fuel. It’s not always Luxair that decides. We can’t afford to lose money, but at the same time, we want to fill our planes. So we have to find the right balance. A fair price. Because we want to carry a million more people within five years.