Lufthansa Group has struck sale-and-leaseback deals covering a dozen Airbus A320-family aircraft under which it will generate proceeds of around €600 million ($656 million).

The 12 narrowbodies are no more than two-years old and are in operation across mainline carrier Lufthansa Airlines, regional operator Lufthansa CityLine and low-cost unit Eurowings. The aircraft have been leased back to Lufthansa Group under six-year terms.

Lufthansa Airbus A320

Source: Lufthansa

Lufthansa says the transaction forms part of the group’s strategy to finance new aircraft through ”a mix of cash, Japanese Operating Leases (JOLCOs) and operating leases”.

The €600 million proceeds will be generated in the fourth quarter of this year. The sale will also result in a book gain of around €100 million.