FRANKFURT, Oct 1 (Reuters) - Lufthansa is

aiming to revive its core airline by 2026 as one of Europe's top

carriers struggles more than its regional rivals with higher

costs and prolonged delays in Boeing ( BA ) plane deliveries,

its chief executive said.

Carsten Spohr described the Lufthansa airline as the German

group's "problem child" and said turning it around is a must for

the wider company's success.

"(It's) a clear goal that the Lufthansa airline will once

again be our flagship for its 100th birthday in 2026," he told

reporters at a briefing late on Monday.

The comment comes as investors fret about the group's

third-quarter results due on Oct. 29, with its shares down 10%

over the last six months.

Lufthansa, which also counts Austrian Airlines, Swiss and

Eurowings among its carriers, has already issued two profit

warnings this year, as spiralling wage costs, a squeeze on

ticket prices and a tough aviation market make for a difficult

recovery.

The delayed delivery of much-needed new jets is compounding

ongoing issues, Spohr said, adding that Lufthansa had been hit

"disproportionately" hard.

"We were just caught at exactly the wrong time, just (when

it came to) the fleet modernisation," Spohr said.

Lufthansa is still waiting for 41 new Boeing ( BA ) planes to

arrive, with the 777x jets on order already facing years-long

delays.

That has forced the airline to keep using the older Airbus

planes the group had hoped to retire before the

pandemic, Spohr said, hurting its ability to expand services on

profitable routes and boost efficiency as newer planes use less

jet fuel.

"We're flying 23 aircraft that we didn't want to fly

anymore," he said.

Other European airlines, including Ryanair, have

also been hurt by Boeing's ( BA ) long delivery delays.

FINANCIAL STABILITY

One way to revive Lufthansa's fortunes is to invest in

further international growth, Spohr said, including its stake in

Italian carrier ITA Airways.

Lufthansa has struggled with competition on its

transatlantic and Asian routes, recently cancelling its

Frankfurt to Beijing flights as Chinese carriers increased

capacity.

The country's airlines have been gaining market share on

international routes as foreign airlines are deterred by weak

Chinese travel demand, rising costs and extended flight times as

they avoid Russian airspace due to the Ukraine conflict.

Lufthansa has said that it hopes to expand into newer

regions, including Latin America and Africa, where it might have

more of an advantage. New hubs with lower cost bases, such as in

Italy, are also appealing ways to strengthen revenue and boost

margins.