• Germany's news in English

Ticket prices set to soar as airlines chase profits

The Local · 14 Aug 2012, 08:53

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

Facebook Twitter Google+ reddit

“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.

Story continues below…

DAPD/The Local/hc

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

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
Student fined for spying on women via their webcams
Photo: DPA

Student from Munich fined €1,000 for spying on 32 different computers, using their webcams to take photographs, or record their keyboard history.

This is how much startup geeks earn in Germany
Photo: DPA

A comprehensive new survey of 143 startup founders shows how much you are likely to be earning at a German startup, from entry level all the way up to sitting on the board.

Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Parents who don't get nursery spot for kid entitled to pay
Photo: DPA

The Federal Court of Justice (BGH) ruled on Thursday that parents whose children don't receive placements in nursery care are entitled to compensation.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd