Predominant position at Frankfurt and Munich hubs and above-average exposure to profitable long-haul business; Valuable brand and good exposure to high-yield premium traffic; Leading European player in cargo transport and maintenance, repair, and overhaul (MRO) services, which provides some diversity; and Very healthy liquidity and consistent 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; and Post-tax unfunded pension liabilities of €4.0 billion, which weaken credit ratios. The ratings on Germany-based aviation group Deutsche Lufthansa AG reflect its predominant market positions, improving operating performance, and healthy balance-sheet structure. The ratings are constrained by the high-risk and
