Lufthansa sells catering unit to private equity firm Aurelius

Lufthansa sold the remaining part of its airline catering business to private equity firm Aurelius Group as Germany’s flagship airline focuses on improving profitability of its core operations. Aurelius agreed to acquire LSG Group for an undisclosed sum, according to a statement published Wednesday. The transaction is expected to close in Q3. Lufthansa had been looking for a buyer for years as demand for short-haul routes outstripped longer flights and low-cost airlines, which offer food for a fee, gained market share. Many passengers tend to skip catering on short-haul flights. Lufthansa sold LSG’s European operations to Switzerland’s Gategroup for an undisclosed sum in 2019. LSG Group employs around 19,000 staff worldwide and generates $2b in annual revenue. The sale will help Lufthansa reduce debt that piled up during the Covid-19 pandemic, which grounded most of its aircraft and caused record losses. Since last year the industry’s outlook “is brightening with the global aviation market recovering to travel levels seen before the pandemic,” Aurelius said in the statement. “This is especially true for the North American region which has already reached pre-pandemic levels,” it said. <br/>