LUFTHANSA CEO Hints At Lower Fares

LUFTHANSA CEO Hints At Lower Fares

Carsten Spohr, Lufthansa Group’s CEO, has suggested that the airline plans to reduce fares for passengers during 2017.   His comments came as part of an interview with German newspaper ‘Westdeustchen Allgemeine Zeitung’.

In his comments, he hinted that the fare cuts this year would be less than the fare cuts that took place during 2016, pointing to slightly higher fuel expenses that are expected during 2017.   To offset the impact of a modest bump in fuel costs, he suggested that savings would be found in other areas of their income statement.

His comments tie into the ongoing negotiations with his pilots as they try to strike a labor peace that has been elusive thus far:   ‘For this reason, we are striving for lower long-term airport charges, for example, and we have to create competitive and thus future-proof structures in personnel costs.”.  These comments also came at the same time that a negotiating period between the airline and the pilot’s union came to an end without a resolution.

He did not suggest specific percentages as far as fare cuts are concerned but in reading between the lines I would assume that the cuts will be in the low single digit percentage point range.

As part of the interview he did plant a hint that certain markets may be at risk for continued Lufthansa service:  “There are market segments in which you can no longer be profitable with our personnel costs of our core brand Lufthansa.”   He further added that since passengers expect lower fares, a correlating reduction in expenses must be executed.  Again, suggesting to labor that with a reduction in fares necessary to remain competitive, labor must move towards accepting concessions to help Lufthansa remain competitive.
 

LUFTHANSA:  New Fare Structures For Europe Now In Effect

LUFTHANSA: New Fare Structures For Europe Now In Effect

 

In case you missed my previous post eluding to the new fare structure rolling out for Lufthansa passengers traveling within Europe, it has now been put in force.

Beginning July 28 (Europe Central Time), Lufthansa passengers who book flights taking place in Europe on October 1 or later will have a simplified 3-tiered fare menu:  Light, Classic, and Flex.

At the end of this post, you’ll find 2 charts provided by Lufthansa that help put these new fares into perspective with benefits, costs, etc.

 

A brief description of each fare level:

LIGHT:

1 piece of carry-on luggage up t0 8 kilograms / 17 pounds.

Fares will be non-refundable and non-changeable.

For additional fees you can select your seat prior to check-in, check a bag (up to 50 kilograms / 23 pounds) or book seats with extra leg room such as bulkhead and exit row seating.

Eligible for Award and Status miles.

CLASSIC:

1 piece of luggage up to 23 kilograms / 50 pounds.

1 carry-on up to 8 kilograms / 17 pounds.

Free seat selection at the time of booking.

For additional fees you will be able to check additional baggage or select seats with extra leg room such as bulkhead or exit row seating.

Fares can be rebooked for a fee, but are non-refundable.

Eligible for Award and Status miles.

FLEX:

1 piece of luggage up to 23 kilograms / 50 pounds.

1 carry on up to 8 kilograms  17 / pounds.

Free seat selection at the time of booking.

For additional fees you will be able to check additional luggage or select seats with extra leg room such as bulkhead or exit row seating.

Fares can be rebooked for free and refundable for a fee.

Eligible for Award and Status miles.

50% Award Mile Bonus.

Regardless of which fare class is booked, Miles and More members will retain their status benefits so access to lounges, priority boarding, priority security etc. will not be affected.   Star Alliance Gold members also will be able to use their benefits as well, including access to Senator lounges, priority check-in, etc.   However, regardless of status level, passengers will be required to pay for a seat if they wish to choose a seat at booking under a ‘Light Fare’ and will need to pay if checking a bag.

Additionally, onboard catering will not be impacted by which fare class you select.   All passengers in Economy will receive the same level of beverage and meal service.

 

The following charts  should clarify any questions that you may have, including additional costs that are involved:

lh2

LH1