One of the world's leading airline groups, with strong positions at Frankfurt and Munich hubs. Diversification into nonpassenger revenues, as a leading European provider of cargo transportation; maintenance, repair, and overhaul services; and in-flight catering. Good exposure to profitable long-haul business and higher-yielding premium traffic. Strong liquidity position. Weak industry conditions due to slowing economic growth. Participation in the cyclical, price-competitive, and capital intensive airline industry. Profitability sensitive to volatile fuel costs. Highly competitive domestic and European markets. The ratings on Germany-based aviation group Deutsche Lufthansa AG (Lufthansa) reflect Standard and Poor's Ratings Services' opinion of its strong market positions, the diversity in its operations, and its good exposure to high-yield premium traffic. We consider that these strengths are partly
