5-Jul-2018 11:57 AM

Lufthansa Group: German domestic market continues to grow in absence of airberlin

Deutsche Lufthansa AG published (04-Jul-2018) a policy briefing for 3Q2018. Lufthansa stated:

  • Only a few months after the insolvency of airberlin, the domestic air traffic capacity gap in Germany "was completely closed". Lufthansa said there will be more domestic seating capacity in Oct-2018 compared to airberlin's final month of operation in Oct-2017. "Eurowings plays a key role in this, as do foreign airlines such as easyJet", Lufthansa Group said;
  • Fares "are falling". Lufthansa Group said: "Since 2010, the Federal Statistical Office has been pointing out how expensive German domestic flights are... Throughout the entire period, tickets have never been as cheap as in Apr-2018". Domestic fares were 5% cheaper than in 2010, while the consumer price index increased 10.7%;
  • Around 240 airlines are competing in Europe. "This is not a viable market structure in the long term, further consolidation is absolutely necessary", the group said, adding: "Policy makers must not obstruct these market mechanisms and should enable further acquisitions". [more - original PR]

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