Predominant position at Frankfurt and Munich hubs and above-average exposure to profitable long-haul business; Valued brand and good exposure to high-yield premium traffic; Leading European player in transport of cargo and maintenance, repair, and overhaul (MRO), which provides some limited diversification benefit; and Very healthy liquidity and able to consistently generate free cash flows. Participation in cyclical, price-competitive, and capital-intensive airline industry; Decentralized home market, which increases pressure from low-cost carriers in domestic and European markets; Relatively high cost base and weak operating margin performance; and Post-tax unfunded pension liabilities of €4.8 billion, which weaken credit ratios. The ratings on Germany-based aviation group Deutsche Lufthansa AG reflect its predominant market positions, strong liquidity, and healthy balance-sheet structure. The ratings are
