HomeTravel NewsAir Fares Won't Return to Pre-Pandemic Rates, Lufthansa Chief Warns

Air Fares Won’t Return to Pre-Pandemic Rates, Lufthansa Chief Warns

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.

Lufthansa chief executive, Carsten Spohr

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.

Geoff Percival
Geoff Percival
Geoff has worked in business, news, consumer and travel journalism for more than 25 years; having worked for and contributed to the likes of The Irish Examiner, Business & Finance, Business Plus, The Sunday Times, The Irish News, Senior Times, and The Sunday Tribune.

Must Read