Using its vast science-backed database and accredited Life Cycle Assessment methodology, Klimato will help the LSG Group measure the environmental impact of its food products. This data will be displayed on menus, categorizing the carbon intensity of each dish as Very Low, Low, Medium, High, or Very High. By incorporating Klimato labels, the LSG Group will empower customers to make informed decisions aligned with their environmental values.

Simon Frischemeier, Head of Operational Excellence and Sustainability at the LSG Group, underscores the importance of our partnership with Klimato. “Collaborating with Klimato enables us to offer customers clear insights into the environmental impact of our menu items, aligning seamlessly with our sustainability targets for 2030. By integrating Klimato labels into our WTCE 2024 menus, we proactively advance sustainability in the travel industry.”

Rodrigo Saraiva, our Senior Culinary Excellence Manager for Latin America, highlights the value of Klimato’s technology in tracking emissions throughout the entire life cycle of food products, from sourcing ingredients to arrival at our facilities. “This data empowers our culinary teams around the world to understand the environmental footprint of each menu item, enabling informed decision-making and classification of menus based on carbon footprint. Moreover, it fosters transparency with our customers, cultivating trust and collaboration.”

Anton Unger, CEO and co-founder of Klimato, applauds the LSG Group’s commitment to sustainability: “Klimato is the easiest way for businesses to demonstrate that they’re prioritizing sustainability.

Attendees of the WTCE 2024 are encouraged to note the inclusion of Klimato labels on the LSG Group’s menus, underscoring the company´s commitment to sustainability. This initiative aims to empower customers with transparent information, facilitating informed decisions aligned with environmental responsibility.

The WTCE 2024 takes place at the Hamburg Messe in Germany, May 28-30. The LSG Group stand will be located in Hall 1A Stand 1E20.

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“The partnership is a perfect way to help our customers improve their net promoter score (NPS) and customer satisfaction by serving what their passengers desire,” says Sven Pawelka, Head of Partnership Management at the LSG Group, pointing at The Vegetarian Butcher’s connection to Unilever Food Solutions, dedicated supplier for the food service industry. “Global networks and brands renowned for sublime quality and innovation power are coming together to support each other in an international business. This is a perfect match.”

The LSG Group plans to offer its customers the ability to cater to passengers on a vegetarian diet, as well as flexitarians and meat lovers – thanks to The Vegetarian Butcher’s broad range of plant-based products that allow people to continue to enjoy their favorite meat dishes without giving up the taste or texture. Paired with the knowledge and understanding of the LSG Group’s Culinary Excellence Team in making complex food flyable, creations that have never hit the skies before now become possibilities.

“Together, we will be exploring how the future might look like and where to realize first joint projects with customers,” says Pia Fernekes, Manager Partnership Management at the LSG Group. A first taste of the partnership will be delivered at the WTCE, hall 1A, stand 1E20, where The Vegetarian Butcher is set to support the company’s booth party with plant-based bites from different international cuisines, joining in LSG Sky Chefs’ culinary guiding theme, “Flavors of the World.”

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Looking to reassert its standing in the industry, the theme will be a reaffirmation of its mission: “We connect food and people. Everywhere.” By focusing on its legacy mission, the company is doubling down on its goal of being recognized as the leading global inflight catering provider, with clear strategic goals in place and a determination to deliver innovation, operational efficiency and value creation across the industries it serves.

“Our debut as a standalone company at this year’s WTCE represents a pivotal moment for our expert brands LSG Sky Chefs and Retail inMotion, as we reaffirm our commitment to shaping the future of aviation catering and onboard retail,” said Alexandra Appel, Head of Communications and Marketing at the LSG Group. “With a refreshed and sustainable booth design and a team of experts presenting our product range, we aim to strike a balance between continuity and innovation, showcasing our longstanding industry leadership and relationships with customers.”

That aim is reflected in a booth environment that will seamlessly blend its innovative spirit with its long legacy. From holograms that showcase cutting-edge technology to private lounges designed to be idea-generating spaces, visitors will be invited to immerse themselves in a unique sensory experience infused with an enticing culinary theme that will spotlight the company’s vast capabilities and reach in this core area: “Flavors of the World.” The theme is a celebration of the diversity of the company’s network of chefs.  From fine-dining menus to casual bar snacks, attendees will be able to indulge in a fusion of global flavors curated by the company’s culinary experts on site.

As further evidence of the company’s commitment to its sustainability goals, each dish’s carbon footprint will be calculated as a baseline for fueling substantive discussions related to menu development. LSG Sky Chefs will also be showcasing its vision of the “Airline Catering of the Future,” a holistic and data-driven concept that blends products and services with advances in technology across the entire travel value chain. 

The company intends to expand visitor’s experience beyond the booth with panel discussions like the Passenger Experience Conference on “Cycle Proofing the Cabin” and the Taste of Travel on “Fighting Fraud in the Cabin.” An exclusive by-invitation-only evening customer event is additionally planned to honor and celebrate existing relationships. Building on what has become a tradition at the WTCE, partners Barilla, Kaelis and Cuisine Solutions will also be contributing to the company’s presence this year with a combined dining experience marrying culinary expertise with innovating ware design. The launch of a new and exciting partnership in the area of plant-based products is also in the works. 

“We are proud to once again bring our presence to the WTCE in 2024, which is our industry’s premiere event,” said Philipp Hees, Head of Sales EMEA Region. “This being our first full year as a standalone organization, it marks a new chapter for the company as we continue to aim at exceeding expectations at every level, drive industry standards and deliver superb value and quality to our customers worldwide.”  

“Our teams from around the world will be present, and they are eager to welcome and host our valued customers and discuss the novelties and trends of our industry,” said Laura Roesges, CCO at Retail inMotion. “The WTCE is the perfect forum to meet face-to-face and engage in in-depth conversations about how we can best meet their needs and take their onboard-retail offering to the next level.”  

The WTCE takes place at the Hamburg Messe in Germany, May 28-30. The LSG Group stand will be located in hall A1 (1E20).

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This was underlined by a 97 percent customer retention rate in the United States, the company’s largest region. Meanwhile, its EMEA (Europe, Middle East and Africa) region, as well as Latin America, also enjoyed a very strong operational year despite the effects of some currency fluctuations. The Asia-Pacific region experienced a significant post-pandemic resurgence that is reflected in the many opportunities the company is currently exploring. In the course of the year Retail inMotion (RiM) invested in transformative initiatives and structural enhancements, hence reaching full maturity and stability as a mid-size company. The Onboard Retail expert also expanded into the Asia Pacific market, where it set the stage for accelerated expansion.  

For the year 2023 as a whole, the LSG Group (LSG Sky Chefs and Retail inMotion) reported a consolidated total revenue of EUR 2,347 billion, surpassing the pre-pandemic figure of the year 2019 (EUR 2,302 billion). This was thanks in large part to its strong performance in the classic airline-catering segment and high inflation protection. As a reflection of that performance, the company’s number of FTEs (full-time employees) stood at 20,950 by the end of the year, an almost 12 percent growth over 2022. An adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of EUR 142.3 million, fell in line with the company’s business plan, which translates into a doubling of the results compared to the previous year.  

“We achieved a solid financial performance in 2023 and delivered on our business plan for the second year in a row,” said Group CFO Karin Sonnenmoser. “This is a remarkable accomplishment, which clearly shows our resilience and strong foundation, particularly because the latter part of the year brought so many changes to our company. In 2024, we are working to further grow our results and to secure our cash situation while looking forward to even more improvements from a financial stability and CapEx (capital expenditure) standpoint.” 

A transformative trajectory in 2023 

During the year, there were several milestones highlighting how the LSG Group pursued its strategic goals during its transitional ownership period. At the international management conference early in the year, Group CEO Erdmann Rauer stated that the strategic focus would remain on the diversification of the business segments, digitalization in all areas, globalization, effectiveness and efficiency.  

In line with its sustainability goals in the People dimension (per the UN’s 2030 Agenda for Sustainable Development), LSG Sky Chefs installed Employee Experience Managers at its customer service centers (CSCs) in the U.S. to tackle the important issues of employee retention and satisfaction, a challenge which arose during and after the pandemic.   

In April, it was announced that the company would be sold to private equity investor AURELIUS. The sale was closed on October 31, giving the LSG Group a new status as a standalone company independent from the Lufthansa Group. On November 1, a new chapter in its long history began for the LSG Group with the conclusion of the sale. 

Innovation and Partnerships in Focus 

At the WTCE (World Travel Catering & Onboard Services Expo) in May, the LSG Group showcased its emphasis on hybrid products and services, like its inflight management suite and the new AICA, our consumption analytics tool that was awarded “Catering Innovation of the Year” at the Onboard Hospitality Awards. At those same awards, subsidiary Retail inMotion (RiM) won gold for Best Onboard Beverage and Best Onboard Catering innovation. One other innovative example by RiM is the AutoSync feature developed for increased onboard-retail payment authorization rates. The feature can also support airlines within an offline payment environment. Another example is the Virtual Try On Webpage RiM created for Discover Airlines.  

Partnerships also took center stage at the WTCE with the participation of Kaelis and Barilla at the company’s booth and an onsite gathering of the LSG Group’s joint-venture partners from around the world. Later in May, the company unveiled “next,” an internal innovation program designed to accelerate how new customer-centric ideas can come to life. 

In June, LSG Sky Chefs North America won the PAX International Award as “Airline Caterer of the Year,” recognizing the company’s high level of excellence in its core area. In partnership with leading customer American Airlines, LSG Sky Chefs unveiled the future of airline catering with the opening of a new state-of-the-art production facility at Dallas-Fort Worth International Airport in May. 

Business wins and extensions 

In the second half of 2023, LSG Sky Chefs expanded its relationship with important customers and retained several key accounts. New acquisitions included, among others, Qatar Airways and Air Premia in Seoul, South Korea (ICN), Air France in Washington-Dulles (IAD) and IndiGo Airlines in Nairobi, Kenya. As far as retentions is concerned, WestJet was retained in Canada, FedEx in multiple locations in Asia-Pacific, Azul at various stations in Brazil and Emirates and LOT in Toronto, Canada. In the onboard retail area, Retail inMotion secured a milestone two-year contract extension with Ryanair, in addition to acquiring Braathens Regional Airlines, Marabu and Cebu Pacific as new customers. In the food commerce area, convenience-store chain RaceTrac was retained with a contract renewal in Orlando, Florida.  

“Even as we were navigating the often-challenging sale process, our people never wavered in their effort to deliver to our customers with the same passion for food, safety and quality that has made us their inflight and food commerce services provider of choice,” said Erdmann Rauer, LSG Group CEO. “Our results for 2023 are a good indicator of the strength of the LSG Group as we transitioned to a new owner and became a standalone company. Through our customer-centric approach and focus on innovation, we will continue to create value through our end-to-end solutions across the travel spectrum. Leveraging the power of our global network and valued partnerships, we will continue to claim a position of leadership in our industry and rise above expectations.”  

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Under the leadership of its longtime CEO Erdmann Rauer and new CFO Karin Sonnenmoser, the LSG Group is on track to continue pursuing its three-pillar strategy, which calls for growth in its main areas of business, namely classic airline catering, onboard retail and food commerce, with the full backing and support of private equity group AURELIUS.

Although its goals for growth and leadership in its industry remain the same, the change in ownership does constitute a symbolic new beginning for the LSG Group after more than five decades as part of the Lufthansa Group.

“Today, our company starts a new chapter in its long history, and we are excited about the unlimited possibilities ahead,” said Erdmann Rauer. “We do wish to thank the leadership of Lufthansa for their many years of steady stewardship as the LSG Group evolved, adapted and grew stronger as an industry leader. Especially during the years of the pandemic, the LSG Group reasserted its value and resiliency as a service provider to the airline industry and beyond. We are proud to have been part of the Lufthansa Group, but are now ready and eager to embark on a new journey. Thank you also, of course, to the AURELIUS Group for believing in our potential and their willingness to invest in our future.”

New CFO Karin Sonnenmoser, who joined the company as of today, brings with her extensive experience from her past positions at the Volkswagen Automotive Group, Zumtobel Lighting Group and electronics retailer Ceconomy. In addition to finance and controlling, she also has a background in procurement and as a supervisory board member in different industries.

Going forward, the emphasis for the LSG Group will be on continuity in creating value for its customers and new shareholders, while exploring new opportunities as it seeks to expand its market leadership.

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In the first half of 2023, the LSG Group reported a consolidated revenue of EUR 1,107 million, compared to EUR 857 during the same period in 2022, which translates into a 29 percent increase. This is thanks to continuing positive trends across all geographical regions of the company, particularly North America and Asia-Pacific.  

The LSG Group’s result turned positive in the first half of 2023. The adjusted EBIT (earning before interests and taxes) improved by EUR 23 million to EUR 10 million after a loss of minus EUR 13 million in the previous year. As a reflection of the overall business recovery, the number of FTEs as of the end of June was 20,918, a 21 percent increase over last year. “We are on track with our business performance and pleased with this positive result in the first half of the year, despite suffering a negative impact from currency developments,” said LSG Group CFO Holger Fleige. “Overall, we are looking optimistically forward to the coming months and especially expect the Asian market to continue to recover.”

Business wins and extensions  

In the span of the quarter, LSG Sky Chefs won new business and extended classic catering contracts across all regions. Among the business wins are contracts with Delta Air Lines in Auckland (AKL), New Zealand, and Air Tahiti in Seattle (SEA), Washington, USA. There were also extensions secured with Cathay Cargo in the U.S., in Anchorage (ANC), Alaska, Miami (MIA), Florida and Pittsburgh (PIT), Pennsylvania. Emirates also extended its contract in Beijing (PEK), China. In the area of food commerce, there was a new deal signed with food services company Samsung Welstory (canteen/cafeteria catering) in South Korea and a contract extended with Home Chef (meal kits) in Raleigh-Durham (RDU), North Carolina, USA. 

Innovation and Digitalization  

The latest LSG Group innovation is called AICA, a consumption analytics tool that offers airline customers the ability to adjust their onboard service to better satisfy the tastes of their passengers and minimize waste. “Next,” the company’s own innovation program continues to make progress with the training of the first slate of facilitators. They are now prepared to conduct and guide innovation workshops, both internally and with customers, to drive new ideas forward faster from conception to implementation. Virtual reality is also making its way into the company’s operations with the latest virtual truck driver training, and virtual tours of its facilities that can save customers travel time and resources. 

WTCE 2023 

At this year’s World Travel Catering and Onboard Services Expo (WTCE) in Hamburg, Germany, the industry’s largest trade show, the emphasis was on the value of partnerships for the future of the LSG Group. At the center of the company’s booth was the culinary stand where chefs prepared a slew of enticing dishes alongside strategic partners like pasta giant Barilla and sous-vide specialist Cuisine Solutions, all served on equipment courtesy of partner Kaelis. In addition, the company invited its joint venture partners from around the world to learn more and lend their support to the execution of the three-pillar strategy mentioned above. 

Awards 

LSG Sky Chefs North America was recognized at the WTCE as Airline Caterer of the Year 2023 by PAX International, a leading industry publication. Meanwhile, at the Onboard Hospitality Awards, the consumption analytics tool AICA was named Catering Innovation of the Year . For its part, RiM took two Onboard Hospitality Awards in the Best Onboard Beverage category for their Deux Frères dry gin, and Best Onboard Innovation for their Currywurst & Fries in the Sky that is served on Eurowings. 

Sustainability and People 

The LSG Group recently set a number of sustainability targets and corresponding key performance indicators (KPIs) under the People, Planet and Prosperity umbrellas. Those targets will now be broken down further. The goal is to allow the organization to take ownership of these targets at their most granular level, so that achieving them becomes an accumulation of wins across the company’s network. As it seeks to also achieve its sustainability targets under the People umbrella, the LSG Group’s own internal LGBTQ support network, Rainbow Sky, continues to carve out its place within the company’s corporate culture. The network aims at further promoting diversity, equity and inclusion within the Group.

“All of these developments point in one direction,” said Erdmann Rauer, LSG Group CEO. “Our company is well on track, both financially and strategically, to becoming a stand-alone organization, with the full support of our future owner. That is why we are continuing to pursue our three-pillar strategy with renewed motivation, as we further develop our business and master our challenges while creating value for our customers. At this inflection point in our history, we remain a strong and innovative organization with a clear vision to assert leadership in the market.”

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The Group bagged the award for Catering Innovation of the Year: AICA, the LSG Group’s consumption analytics tool, powered by Artificial Intelligence (AI). The sophisticated AI-powered tool scans food trays post-flight to offer detailed insights into passengers’ consumption habits.

The Group’s expert brand, Retail inMotion, specialists in onboard retail solutions, were awarded Best Onboard Beverage for their innovative color-changing dry gin when tonic water is added, Deux Frères. In addition, the team also received a “Highly commended” for Catering Innovation of the Year for their Currywurst & Fries in the Skies entry.

CEO, Erdmann Rauer commented, “This recognition is testament to the hard work of our amazing colleagues, who have worked tirelessly to pioneer the latest innovations and raise the bar for our customers. The award recognizes the immense effort and dedication of our teams and celebrates their pioneering spirit.”

For more than five decades, the LSG Group has been creating and delivering products and services that meet the needs of its customers, while maintaining a commitment to quality and customer satisfaction. This commitment was recognized by the Onboard Hospitality Award judges, who commended the LSG Group for its commitment to innovation and customer service.

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Our company has developed a virtual reality training software to give our employees a significantly quicker, more engaging and safer training method. The software focuses on truck drivers being familiarized with opening and closing the doors of the A320 and B737 planes. There are two different modes within the training. The first one takes drivers through the entire process, and the second allows them to test the process independently. The virtual training focuses on details and authenticity, so attention is paid to every detail. 

Moreover, the LSG Group is replicating its facilities in the digital environment by taking 360-degree pictures and creating virtual tours. This allows users to remotely access our kitchens and get a feeling for our operations. Additionally, it is possible to add videos to the tour to share best practices and show the whole operational process. These tours can be experienced via a browser or in virtual reality.  

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The Vegan Menu: An indulgence from root to leaf

The secret to excellent vegan cuisine: It’s not just the vegetable, it’s what you make of it. Each dish revolves around just one vegetable, prepared in surprisingly many ways and combined with a fruit or nut. The idea behind this display of sheer versatility was to show that vegan ingredients can make for a complete dish.

When sustainability is key, ingenuity is too. Our principle: to use all edible components of a plant-based ingredient. The result: endless possibilities to prepare and enjoy vegan meals. Indulge in the extraordinary versatility in look, consistency and – of course – taste.

The Partnership Menu: Partnerships for excellence

The quality of the ingredients determines the quality of the dish. This is why we choose our partners carefully. Their extraordinary products, combined with our culinary excellence are the best pre-conditions to fulfilling our vision of outstanding creations and to leave memorable impressions.

With partnerships in focus at this year’s WTCE, we invited NotCo, Cuisine Solutions, Barilla and Kaelis to talk about our collaboration. Sebastian Schäfer and his Culinary Excellence team reveal what will be on the menu in Hamburg. 

This menu highlights three of our partners: Barilla is the manufacturer of finest Italian pasta, including the new Al Bronzo series with durum wheat and high-quality proteins. Cuisine Solutions are specialists in perfectly cooked proteins, sauces and vegetables. NotCo delivers the taste of animal products without using animal products. Sustainable and delicious.

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