Lufthansa squeezed by competition in key transatlantic market, says CFO

Lufthansa faces falling ticket prices in its key transatlantic market amid rising competition from both Chinese and U.S. rivals, the German airline's CFO told reporters. Lufthansa's key Asian flights are becoming less profitable as Chinese airlines muscle in on the long-haul market, Joerg Beissel said at a news conference in Frankfurt. "The second challenge we face is in North America, that we can only fill economy class with large discounts," as North American rivals are flying direct to holiday destinations in Europe, eating into Lufthansa's market share, added Beissel. That is in part because U.S. airlines have reallocated capacity after scaling back Chinese flights due to competition. "If you summarise this, then the increased costs and decreased revenue make it clear that we need a structural response" to achieve an 8% profit margin goal, said Beissel. Lufthansa last month warned of a fall in third-quarter earnings as the group that also includes Swiss International Air Lines, Austrian Airlines and Eurowings grapples with higher wage costs and a squeeze on ticket prices.<br/>