Lufthansa Faces Traffic Shift as Costs Rise

Lufthansa is seeing a significant shift in air passenger traffic away from its German hubs as flights increasingly route through non-EU locations. A study by the German Air Transport Association (BDL) and the German Aerospace Center (DLR) cites higher costs stemming from EU environmental regulations as the primary driver.

In 2024, approximately 54% of flights originating in Germany destined for East and Southeast Asia routed through hubs outside the EU, particularly in the Gulf region and Turkey. This marks an increase from 44% in 2019 and 34% in 2010. Consequently, the share of these flights handled by Lufthansa’s hubs in Munich and Frankfurt fell to around 36% in 2024, down from 56% in 2010.

The study attributes the trend to the European Emissions Trading System, which requires European airlines to purchase emission certificates for feeder flights to their home hubs – a cost not incurred when routing through non-European hubs like Dubai. This creates a competitive disadvantage for European carriers. The BDL reports that German air traffic recovery following the pandemic has been notably slower compared to the global average, characterizing the situation as a “gradual decoupling” of Germany from international air travel.