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, which provides some diversification Strong liquidity and good cash flow generation Participation in cyclical, price-competitive, and capital-intensive airline industry Volatile fuel costs Decentralized home market, which increases pressure from low-cost carriers in domestic and European markets The ratings on Germany-based aviation group Deutsche Lufthansa AG are supported by what Standard&Poor's Ratings Services sees as dominant market positions, a resilient operating performance, and a healthy balance-sheet structure. We consider that these strengths are partly offset by the high-risk and cyclical airline industry, the adverse
