Lufthansa Group Taps Leisure Units to Drive Growth
Lufthansa is shifting its growth strategy toward its leisure-focused subsidiaries as the flagship carrier continues to face operational and financial challenges. CEO Carsten Spohr said the airline group will lean on Discover Airlines and the newly launched City Airlines to capture new market opportunities and diversify revenue streams.
Discover Airlines, Lufthansa’s leisure arm, has been expanding its network of holiday destinations across Europe, Africa and the Americas, targeting cost-conscious travelers seeking full-service reliability. City Airlines, meanwhile, is designed to feed passengers into Lufthansa’s main hubs in Frankfurt and Munich, offering regional connectivity at lower operating costs.
Spohr noted that these units give Lufthansa more flexibility to compete with low-cost rivals and adapt to shifting demand patterns. The group’s flagship airline has been under pressure from rising costs, labor disruptions and intense competition on both short-haul and long-haul routes, prompting the need to rethink its growth model.
Industry analysts say the move mirrors a broader trend among legacy carriers using separate brands to pursue niche markets without diluting their mainline operations. By leveraging Discover and City Airlines, Lufthansa can strengthen its presence in leisure and regional segments while freeing up its core brand to focus on premium and long-haul services.
The strategy also supports Lufthansa’s long-term plan to balance profitability with market share, improve fleet utilization and provide passengers with more choice. As these subsidiaries scale up, they are expected to play a critical role in stabilizing the group’s financial performance and enhancing competitiveness.
Related News: https://airguide.info/?s=Discover, https://airguide.info/?s=Lufthansa
Sources: AirGuide Business airguide.info, bing.com