Lufthansa Reports Sharp Rise In Passenger Volume - Business Travel News

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Lufthansa Reports Sharp Rise In Passenger Volume

October 14, 2010 - 03:55 PM ET

By Amon Cohen

Lufthansa's passenger numbers surged ahead 12.1 percent in September, far more than its main European rivals, but the German flag carrier remains cautious about pushing up fares, its United Kingdom and Ireland general manager told BTN Wednesday.

Marianne Sammann said the average ticket price for Lufthansa's U.K.-originating passengers fell 25 percent during the recession, and although it has started to pick up since the beginning of 2010, it has been a slow recovery.

"It has been a long process," she said. "We can't expect prices to recover in one year. It will slowly develop as passenger numbers pick up and more of them move back up to the front of the aircraft. To return to where we were, average ticket price would have to increase by 30 percent, and I am struggling to see how any travel buyer could get that into their budget."

Lufthansa's rise in September passenger volume far exceeded those of British Airways, up 4.3 percent, and Air France/KLM, up only 1.5 percent—although its figures were affected by air traffic control strikes in France. The entire Lufthansa Group, which also includes Swiss, Austrian Airlines and British Midland, was up 7.9 percent to 8.65 million passengers.

Sammann said the September figures revealed the true underlying recovery in the market after results for business travel-heavy months earlier in 2010 were distorted by such events as the ash cloud crisis. She also said that Lufthansa outperformed its rivals because it reduced capacity less drastically when the recession started.

"We made every effort to adjust capacity less than our competitors and be ready to take advantage of the upturn," she said. "We kept the capacity and quality of our network. It was a good investment."

Load factor for the core Lufthansa airline in September was 82.6 percent.

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