Significant cost reductions at Eurowings needed to distinguish itself from new LCC entrants

    CAPA – Centre for Aviation, in a report entitled: ‘Lufthansa and competing LCCs erode yields in Germany and Austria‘, stated (03-Jul-2019) Lufthansa Group has increased its seat share over the past decade both domestically and internationally in Germany and Austria. This is levelling off in both segments of the German market and the group is losing share to increased activity of new entrant LCCs in Austria. In order to distinguish itself from airlines accepting losses to expand market share, Lufthansa Group must consider slowing or reversing growth where this is not profitable and making significant cost reductions at its loss making Eurowings unit. [more – CAPA Analysis]