Lufthansa CEO slams ultra-cheap fares

Bloomberg Zurich | Updated on July 14, 2019 Published on July 14, 2019

Carsten Spohr, CEO of German airline Lufthansa AG   -  REUTERS

Criticises competitors for offering unprofitable fares as price war squeezes industry earnings

Deutsche Lufthansa AGs Chief Executive Officer Carsten Spohr criticised competitors for offering unprofitable ultra-cheap fares as a price war squeezes industry earnings.

Tickets costing less than 10 euros ($11) are economically, ecologically and politically irresponsible, he said in an interview with the Swiss newspaper NZZ am Sonntag. Flights for less than 10 euros shouldn’t exist.

Europe’s two biggest low-cost carriers are losing a massive amount of money as they seek to boost sales in Germany, Lufthansa’s home market, Spohr said. Lufthansa lowered its 2019 profit forecast last month, citing a decline in air fares caused by competition from low-cost rivals in Europe particularly Germany and Austria.

Nobody is going to push us out of our home markets, Spohr said. Still, the price war leaves its traces with us as well.

Ryanair Holdings Plc is selling tickets from Berlin costing less than 10 euros to cities including Budapest, Barcelona and Rome, based on a search of its website. The one-way fares exclude checked bags or reserved seating.

Published on July 14, 2019
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