Tuesday, 02 January 2024 12:17 GMT

Aviation Taxes Force Lufthansa to Cut Domestic Flights


(MENAFN) Increasing aviation taxes and fees in Germany are compelling the national carrier, Lufthansa, to reduce approximately 100 domestic flights from its upcoming summer timetable, according to the airline’s CEO, Carsten Spohr.

Over the past six years, government-imposed expenses for airlines in Germany have nearly doubled, he noted.

Spohr warned that “without a reduction in location costs, further cuts will be unavoidable.”

He added that “this involves around 100 domestic flights per week, which could be eliminated again next summer.”

The airline is also seeing a shift in its passenger demographics due to higher taxes and fees on economy tickets, with more travelers opting for first, business, and premium economy classes.

Lufthansa’s concerns reflect ongoing frustrations shared by many airline leaders regarding Germany’s high aviation cost structure, which they claim diminishes the industry’s competitive edge.

In addition to flight reductions, Lufthansa revealed plans last month to eliminate 4,000 administrative positions by 2030, mostly affecting jobs within Germany.

Facing challenges such as labor strikes, delays in aircraft deliveries, and underperformance in its core business, Lufthansa has had to revise its financial outlook downward twice within the past year.

The airline has also fallen short of the medium-term margin goals it set back in 2021.

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