• Germany edition
 
Ticket prices set to soar as airlines chase profits
Photo: DPA

Ticket prices set to soar as airlines chase profits

Published: 14 Aug 2012 08:53 GMT+02:00
Updated: 14 Aug 2012 08:53 GMT+02:00

“Flying is going to become more expensive,” said Klaus-Peter Siegloch, president of the German Air Transport Industry (BDL). The time of “very cheap tickets is nearing an end,” he told Monday’s Hamburger Abendblatt newspaper.

“The average profit must increase if we want to have solvent airlines in the future,” he said.

Lufthansa and Air Berlin, the two biggest German airlines are both having difficulty, and are struggling to reduce their costs. Lufthansa made a loss of €168 million in the first half of this year, while Air Berlin was €66 million in the red in the second quarter of the year.

Lufthansa ticket prices are already starting to take off, as evidenced in a letter to investors saying that the price situation was “continuing to develop positively” in July. A spokesman suggested that prices had been rising for years. “Flying is becoming more expensive,” he said.

Siegloch complained that German airlines and airports were being burdened with increasing costs which were particular to them and not seen elsewhere. Airline passengers have to pay a ticket tax since the start of last year – currently that adds €7.50 to each trip.

He called for this tax to be scrapped. The state “should not artificially make the situation more difficult for domestic companies,” he said.

High fuel costs were also making it difficult to keep prices low, he said.

The situation at Germany’s airports was also tricky, with just six of the 22 making a profit, he said. Those near the borders were suffering in particular as passengers were opting to travel from foreign airports to avoid the ticket tax, he suggested.

DAPD/The Local/hc

The Local (news@thelocal.de)

Your comments about this article

09:28 August 14, 2012 by Berlin fuer alles
The ticket tax is a self defeating tax making Germany more expensive to visit. But what makes Klaus-Peter Siegloch think AirBerlin and Lufthansa are offering cheap tickets? They are amongst the most expensive already. If they are not making profit with those ticket prices then they should consider becoeing more competitive and filling their planes. If they already have full planes and are losing money then the management should be sacked as there is money being wasted.
09:36 August 14, 2012 by pigsnuck
I fly internationally regularly, and sometimes I fly Lufthansa. Lufthansa planes seem to be stuck in the early 90's! And the cabin crew are generally taciturn and not very helpful, even in business class. I try to fly other airlines whenever possible, and I'm sure I'm not the only one.
10:12 August 14, 2012 by lucksi
People are traveling to foreign airports to save 7.5 Euro in taxes? Yeah, right.

I live near some of those border airports, like Düsseldorf, Weeze ect. It's at least half an hour more to drive to the nearest airport over the border and my car goes through more costs in fuel than the 7 bucks I could save.

It has probably nothing to do with the fact that the flights are much cheaper there, but hey, let's blame it on some tax.
10:49 August 14, 2012 by ChrisRea
¦quot;The average profit must increase if we want to have solvent airlines in the future¦quot;

I am not sure if Mr. Klaus-Peter Siegloch masters the financial concepts. Solvency has little to do with profit, but with cash-flow. If you have a profit, as little as it can be, but a good cash-flow, then you are never in peril of insolvency. I guess that what he meant is that the airlines should be(come) profitable, not that the average profit must be increased.
12:05 August 14, 2012 by Berlin fuer alles
@lucksi People base their holiday destination choice on costs. 7,50 EUR each way is 15 EUR per person. A family of 4 will find this to be a consideration. Not everyone flies for business reasons only. And even in business all costs are taken into consideration anyway so a company flying thousands per year for business reasons will consider this in their cost analysis even if it is only a small concern. Taxes do impact on where and how people spend their money. Always has and always will.
20:11 August 14, 2012 by maxsleg
Lufthansa must be one of the most operationally clumsy organisations I've ever had the (mis)pleasure to be involved with. Arrogant management, staff with no interest in customers and a very broken customer interaction model. After spending 4 years flying +150k a year with then I've changes. Emirates, Turkish etc are all eating their lunch. Even United have figured this out. Operational inefficieny is killing them, not ticket pricing........
Today's headlines
Germany's first Iraq arms delivery is ready
The weapons are ready to be sent. Photo: Bundeswehr/Pulpanek

Germany's first Iraq arms delivery is ready

Germany’s military said on Thursday it was ready to send its first shipment of arms to Kurds fighting Islamic extremists Isis in northern Iraq. READ  

Police find dead baby in train station locker
The lockers at Hamburg central station. Photo: DPA

Police find dead baby in train station locker

Police in Hamburg found the body of a baby hidden in a train station locker on Thursday morning. The woman believed to be its mother is in psychiatric care. READ  

German of the Week
Munich's mayor practices for Oktoberfest
Munich Mayor Dieter Reiter. Photo: DPA

Munich's mayor practices for Oktoberfest

Dieter Reiter has been in office for less than five months and will this week take on one of the Munich mayor's most important duties - tapping the first keg at Oktoberfest. He is only the city's second mayor in the last 21 years. READ  

Europeans descended from three tribes
The skull of a farmer from Stuttgart examined for the study. Photo: Joanna Drath, University of Tübingen

Europeans descended from three tribes

German researchers have traced the origins of modern Europeans to a migratory melting pot of three ancient tribes dating back 8,000 years. READ  

Germans return 'stolen' parts of Great Pyramid
The pyramids at Giza. Photo: DPA

Germans return 'stolen' parts of Great Pyramid

Fragments of the Great Pyramid of Giza, which were allegedly stolen by German archaeologists last year, have been returned to Egypt from Germany. But the case against those who allegedly took the samples is continuing. READ  

Oktoberfest 2014
Your guide to Munich Oktoberfest's tents
Photo: DPA

Your guide to Munich Oktoberfest's tents

There are 14 "tents" at Munich's Oktoberfest, all with their own uniqueness and theme. In the second of The Local's four-part guide to the world's biggest beer festival, we look at some of the best ones. READ  

Drunk teachers ruin school trip to Hamburg
Photo: DPA

Drunk teachers ruin school trip to Hamburg

A school trip was cancelled after just one day when two teachers got so drunk while they were supposed to be looking after pupils in Hamburg that police had to be called. READ  

Where to find the speed cameras today
Photo: DPA

Where to find the speed cameras today

Police deployed 13,000 officers across Germany on Thursday to catch speeding drivers in a so called "Blitzmarathon". Here is where the radar guns are. READ  

US WWII bomb forces 11,000 from homes
The area of the town centre evacuated. Photo: Lüneberg Stadt

US WWII bomb forces 11,000 from homes

Thousands of people in the centre of an historic town in central Germany had to leave their homes late on Wednesday evening after a 250kg bomb was found. READ  

Who is listening to Berlin's music?
Photo: DPA

Who is listening to Berlin's music?

A study by music-streaming service Spotify has revealed the global reach of Berlin-born music, with genres originating in the capital finding a loyal audience in some unlikely places. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Marks & Spencer
Sponsored Article
Fashion Ladies of the Local: Win a New Autumn Look
Photo: DPA
Gallery
Oktoberfest 2014: The best and worst in dirndl fashion
Photo: Shutterstock
Gallery
Ten German words you'll never want to hear again
Photo: DPA
Education
German universities tumble in global rankings
Photo: DPA
Tech
Netflix launches in Germany (in English too)
Photo: DPA
Politics
These men want to be the next mayor of Berlin
Photo: Shutterstock
Business & Money
The three types of firms hiring foreigners
Photo: DPA/ESA
Tech
VIDEO: How one German astronaut sees Earth
Photo: DPA
Berlin
Frisky couple shock Berlin commuters
Photo: Bayernpartei/DPA
Politics
Why some Bavarians want a Scottish 'Yes'
Photo: DPA
Gallery
12 things to do in Berlin for less than a latte
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,374
jobs available
Toytown Germany
Germany's English-speaking crowd