Lufthansa Group is positioning itself for significant growth in the Asian aviation market, particularly focusing on Thailand as a key destination for both passenger and cargo services.

Carsten Spohr, the chief executive of Lufthansa Group, articulated that Thailand is not only a prominent tourism hub but also presents extensive opportunities for various business sectors, enhancing the group’s aircraft and non-airline ventures.

The demand for air cargo from Thailand has been increasing, aligning with the broader trends in the Asia-Pacific region, which has been identified as the fastest-growing market for maintenance, repair, and overhaul (MRO) activities.

Lufthansa Technik, the group’s MRO subsidiary, is currently engaged with the Royal Thai Air Force and is seeking additional customers or partners within this sector.

Bangkok, a strategic hub for Lufthansa, currently hosts the highest number of flights operated by the airline, with over 10,000 available seats weekly across 27 flights originating from European hubs.

Recently added connections include those through ITA Airways, in which Lufthansa holds a 41% stake, enhancing its network into Italy and beyond.

Approximately one-third of passengers traveling to Bangkok transfer to other destinations in Thailand and Asia, indicating robust interconnectivity in the region.

In response to high demand, Lufthansa has extended its Airbus A380 services from Munich to Bangkok for another month, particularly to accommodate travelers during the Songkran holiday in April.

The airline plans to operate the A380 on this route throughout the upcoming winter schedule starting in October.

Lufthansa's new cabin design, dubbed "Lufthansa Allegris," will debut in its long-haul aircraft serving Thailand next year, following its initial rollout on flights to Shanghai and Mumbai.

Currently, passenger revenue from the Asia region contributes approximately 14% to Lufthansa's total earnings, while cargo revenue from the region stands at about 42%.

Spohr addressed challenges posed by airspace restrictions, particularly the closure of Russian airspace, which affects operational efficiencies for European carriers in northern Asia.

The re-opening of this corridor would significantly benefit route negotiations between the US, Russia, and Europe.

Regarding the broader outlook for the aviation sector, Spohr expressed optimism fueled by strong forward bookings and a resurgence in travel demand post-pandemic.

He noted an increased willingness among leisure travelers to purchase premium travel experiences, in contrast to lower engagement from corporate travelers.

This tendency is reflected in the group’s recent introduction of an upgraded first-class cabin and forthcoming enhancements to the Swiss Air brand.

Anticipating significant growth, the Lufthansa Group expects at least double-digit increases in capacity and seat kilometers by 2025, powered largely by contributions from ITA Airways, which is projected to exceed 10% growth.

The group operates 730 aircraft and plans to add over 100 more through ITA's integration.

In addition to fleet expansions, Lufthansa has secured a 10% stake in Air Baltic to mitigate potential aircraft shortages during the high-demand summer season, particularly in light of Pratt and Whitney engine issues.

Financially, the group aims to achieve a turnover exceeding €40 billion (approximately 1.43 trillion baht) in 2025 and has earmarked up to €4 billion for aircraft modernization, along with plans to take delivery of 26 new aircraft this year, including the Boeing 777X slated for 2026.

Airfare adjustments appear likely in response to soaring demand and constrained aircraft supply, alongside rising taxes and regulatory costs, especially in Europe.

Lufthansa has incorporated an environmental surcharge for all European flights and utilizes a blended sustainable aviation fuel for its EU departures.

Approximately 4% of passengers voluntarily opt for a premium "green" fare to support the airline’s sustainability initiatives.