Lufthansa Eyes Asia Expansion with Thai Focus; Diversifies Portfolio

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The Lufthansa Group is ramping up its presence in Asia with a strategic focus on Thailand, aiming to tap into both tourism and burgeoning business opportunities. Group CEO Carsten Spohr underscored the dual allure of Thailand, not only as a tourist haven but as an emerging business hub, with growing demands for cargo and maintenance, repair, and overhaul (MRO) services in the Asia-Pacific.

 

Lufthansa Technik, the group's MRO arm, currently collaborates with the Royal Thai Air Force and is actively seeking new partnerships within the region. The airline already establishes a significant footprint in Thailand, offering over 10,000 seats weekly through 27 flights from European hubs, including a new route from Rome via ITA Airways, a carrier in which Lufthansa holds a 41% interest. A substantial portion of travellers from Europe to Bangkok continue their journeys to other Asian destinations.

 

In response to peak travel demand during Songkran in April, Lufthansa is extending Airbus A380 services from Munich to Bangkok and plans to maintain this route during the forthcoming winter schedule. Passengers flying to Thailand can also expect enhanced comfort with the introduction of Lufthansa's new Allegris cabin design.

 

Asia currently constitutes 14% of Lufthansa's passenger revenue and an impressive 42% of its cargo earnings. However, the closure of Russian airspace remains a notable challenge, with hopes for its reopening to facilitate smoother operations in northern Asia.

 

 

Lufthansa's global outlook is optimistic, buoyed by strong forward bookings and a surge in travel demand. Significant investments in aircraft upgrades and services are positioning it as a leading premium European airline. Enhancements include a new first-class offering and plans for a Swiss Air first class launch later this year. Notably, leisure travellers are showing increased interest in premium seats, despite corporate travel not fully rebounding to pre-pandemic levels.

 

By 2025, Lufthansa anticipates double-digit growth in capacity, supported by ITA Airways and other acquisitions. The fleet will expand with over 100 new aircraft. The recent stake in Air Baltic is a strategic step to address aircraft shortages through wet leasing solutions. Lufthansa is targeting a turnover exceeding 40 billion euros by 2025, dedicating up to 4 billion euros for fleet modernisation, including the introduction of the Boeing 777X in 2026.

 

Airfares are predicted to rise due to sustained high demand and limited capacity, with European taxes and regulatory costs further influencing prices. As part of its commitment to sustainability, Lufthansa applies an environmental surcharge on Europe-origin flights and integrates a 2% sustainable aviation fuel blend for EU departures, with 4% of passengers choosing a green fare to support eco-friendly travel, reported The Thaiger.

 

-- 2025-03-06