Lufthansa slams Ryanair fare policy

Lufthansa’s chief exeuctive has slammed as “irresponsible” Ryanair’s move to charge less than €10 for tickets on certain German routes, saying the airline won’t be pushed out of its home market.

Lufthansa slams Ryanair fare policy

Lufthansa’s chief exeuctive has slammed as “irresponsible” Ryanair’s move to charge less than €10 for tickets on certain German routes, saying the airline won’t be pushed out of its home market.

Ryanair is selling tickets from Berlin costing less than €10 to cities including Budapest, Barcelona and Rome.

The one-way fares exclude checked bags or reserved seating.

In a Swiss media interview, Carsten Spohr criticised Lufthansa competitors for offering ultra-cheap and unprofitable fares as a price war squeezes industry earnings.

Mr Spohr described the practice of charging less than €10 for plane tickets as “economically, ecologically and politically irresponsible”.

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. The price war leaves its traces with us as well,” Mr Spohr said.

Ryanair’s bumpy year continued with the announcement of the departure of its chief operating officer Peter Bellew late last week.

In May, the airline group — which sees Germany as a key growth market — reported its weakest annual profit in four years and said continued low fares could eat into earnings for the next couple of years.

But, chief executive Michael O’Leary said Ryanair would be well-placed for “attritional fare wars” as it has the lowest cost base.

Meanwhile, Mr Spohr also said he expects Lufthansa’s passenger numbers to rise by about 4% this year, playing down talk that public support for teenage climate activist Greta Thunberg might be curbing air travel.

“At this time we don’t see restraint — in fact, the opposite,” he said.

Ryanair recently reported an 8% rise in monthly passenger numbers for June and Davy expects its first half passenger growth to be between 11% and 12%.

Ryanair is expected to report weak first-quarter figures at the end of this month, though, with profits potentially down 20%.

Additional reporting Reuters and Bloomberg

more courts articles

Man (25) in court charged with murdering his father and attempted murder of mother Man (25) in court charged with murdering his father and attempted murder of mother
Man appears in court charged with false imprisonment of woman in van Man appears in court charged with false imprisonment of woman in van
Man in court over alleged false imprisonment of woman Man in court over alleged false imprisonment of woman

More in this section

FILE PHOTO The Competition and Consumer Protection Commission has cleared the purchase of Goodbody Stockbrokers by AIB END Goodbody Stockbrokers fined over €1.2m by Central Bank over rules breaches
Nottingham City Centre Stock Irish staff at the Body Shop wait for wages as retailer shuts stores in the Republic
Ryanair comments on Norwegian Ryanair boss O'Leary's spat with Transport Minister over Dublin Airport escalates
IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
ie logo
Puzzles Logo

Play digital puzzles like crosswords, sudoku and a variety of word games including the popular Word Wheel

Lunchtime News
Newsletter

Keep up with the stories of the day with our lunchtime news wrap.

Sign up
Cookie Policy Privacy Policy Brand Safety FAQ Help Contact Us Terms and Conditions

© Examiner Echo Group Limited