The head of Lufthansa has warned that air fares will not return to pre-Covid rates because the airline industry needs to raise air fares in order to buffer itself against future shocks.
Speaking in Berlin, Carsten Spohr – Lufthansa’s group chief executive – said it was “irresponsible” to sell air tickets for under €20, saying such a price was too low.
Mr Spohr’s remarks echo those of Ryanair group chief executive Michael O’Leary from earlier in the summer. Mr O’Leary said the days of ultra-low air fares are over, due to rising fuel prices, and that Ryanair’s average fares are likely to rise by around €10 to €50 in the next five years.
Mr Spohr also warned that consumer demand is likely to dampen as he expects Germany to enter recession at some point.
Meanwhile, Lufthansa has received a promise from its pilots that they won’t strike until next summer, at the earliest. The pledge follows a recent pay deal being agreed between the German airline and the Vereinigung Cockpit pilot’s union.
A clause in the agreement includes a no-strike commitment running up to June 30, 2023.
Earlier this month, a pilot strike – before the deal was reached – resulted in Lufthansa cancelling nearly 800 flights, which disrupted around 130,000 passenger journeys.
