Expensive ticket prices make Eurowings and Discover Airlines profitable
For many years, the Lufthansa subsidiary Eurowings was deep in the red. The former long-haul activities in particular dragged the operating result deep into the basement. After an extremely long dry spell, the airline returned to profit in the first half of 2023. Officially, the initial success is justified by the fact that the strategy has been adjusted and that this is now bearing fruit. However, the reason behind this is more likely to be that the Lufthansa Group has massively increased prices on almost all routes where it has no competitors. There are many routes, especially from Germany, where it has no competitors. Since demand is very high this year, the group, to which Eurowings also belongs, has managed to sell tickets at significantly higher prices. The general inflation alone cannot justify the exorbitantly increased airfares on many routes, but if passengers are willing to pay for it, it is called a free market economy or completely legal profit optimization. In general, this would also be a favour to the green camp in politics, which has been demanding for several years that airline tickets must become more expensive. However, if the planes are filled despite higher prices, the environment does not benefit, but rather the owners and shareholders enjoy higher dividends through legal detours. Eurowings Discover also flies profitably Eurowings was once a regional airline that initially operated on its own account and later as an ACMI provider for Lufthansa and, for a short time, Germanwings. The carrier was later converted into a low-cost airline for the Kranich Group and has been making high losses ever since. Only
