World Economy

Lufthansa Fares Under Pressure

Lufthansa Fares Under PressureLufthansa Fares Under Pressure

Deutsche Lufthansa AG said passenger fares are set to erode further this year as it grapples with unions over a restructuring of European operations aimed at stemming the flow of customers to discount rivals, Bloomberg reported. The stock fell as much as 7.1%. Lufthansa’s yield, a measure that reflects average ticket prices, suffered the biggest drop in at least four years in the first quarter, while airline revenue declined almost 4%, it said. Europe’s third-largest airline, which is seeking to build its Eurowings discount arm into a rival for low-cost leaders Ryanair Holdings Plc and EasyJet Plc, said the intensity of competition and price pressure shows no sign of easing.