Carsten Spohr, CEO of Lufthansa, has sounded a warning about the rising costs in the German aviation industry, citing high airport fees and other operational expenses as a major threat to the country’s airline sector. In a recent interview, Spohr expressed concern that these escalating costs are leading to reduced flight availability and diminishing Germany’s competitiveness in the global market.
Rising Costs Threaten Flight Connectivity
Spohr highlighted that the increasing fees, particularly those related to airports and aviation taxes, are placing unsustainable pressure on airlines operating in Germany. He pointed out that the financial burden is prompting many carriers to either scale back or eliminate services to and from German airports. “Airlines are cutting important routes or avoiding German hubs altogether,” Spohr warned, signaling that these trends could have lasting effects on the country’s aviation network.
Airlines Reducing German Routes
Several airlines have already begun cutting back their services in Germany. British Airways and EasyJet have both reduced their flight schedules to the country, while Ryanair has announced plans to halt all operations in cities like Dortmund, Dresden, and Leipzig by summer 2025 due to mounting airport charges. Additionally, the budget airline plans to significantly reduce its flights from Berlin and Hamburg. Eurowings, a Lufthansa subsidiary, also announced it will cut more than 1,000 flights from its schedule by 2025, affecting air traffic in Hamburg.
Fewer Choices and Higher Prices for Passengers
Industry experts predict that the ongoing cost pressures will lead to fewer flight options and higher ticket prices for travelers in the coming years. German passengers, both business and leisure, are likely to face reduced availability and increased fares, particularly as airlines struggle with aircraft shortages due to supply chain constraints. Spohr emphasised that unless the financial strain is alleviated, these challenges will persist, impacting the overall travel experience in Germany.
Future Challenges and Regulatory Pressures
Looking ahead, Spohr noted that additional regulatory measures aimed at reducing emissions, such as new mandates for sustainable aviation fuels, could further complicate the situation. These fuels, including e-fuels, are not yet available in sufficient quantities to meet industry needs, posing another challenge for airlines already dealing with high operating costs.
Declining Competitiveness of German Aviation
Spohr warned that Germany’s current cost structure is making it increasingly difficult for the country’s aviation sector to remain competitive on a global scale. He criticised the growing financial pressures from environmental taxes and levies, noting that they are pushing many airlines to rethink their operations in Germany.
“Germany’s connectivity to key economic regions is falling behind by international standards,” Spohr concluded, urging for a more balanced approach to maintaining the country’s aviation infrastructure.