Just a few hours ago, Lufthansa raised its forecast for full-year 2008 operating profits from EUR1.1 billion to EUR1.3 billion thanks to a stronger-than-expected fourth quarter. And this comes in at a time when not most major airlines around the world are struggling, but when Lufthansa’s main rivals in Europe, Air France-KLM and British Airways have both issued profit warnings in the past two weeks.
How does Lufthansa defy the trend?
A Lufthansa spokesperson says that lower fuel prices and favorable valuation effects were offsetting a slowdown in traffic demand. But I think there’s more at play here. It’s the formidable Lufthansa brand, that has stood the test of tough times, yet again. A brand that exudes reliability and efficiency
And a strong Lufthansa brand coupled with a vast network in developing markets like India only further helps the cause.
Continuing my series of articles on what makes or breaks airlines operating in India this February, I’d like to share the story of Lufthansa – probably the strongest foreign carrier in India. Below is an article that was recently published in the Indian Express (North America) edition, which comprehensively covers the key success factors for Lufthansa. The article includes a couple of quotes by me, as well as other leading aviation industry experts. You can read it right here, or download it for later as well.