The ratings on Germany-based aviation group Deutsche Lufthansa AG are supported by, in Standard&Poor's Ratings Services' opinion, its strong market positions, good exposure to high-yield premium traffic, the diversity in its operations, and its healthy balance-sheet structure. We consider that these strengths are partly offset by the high-risk, cyclical airline industry; the adverse effects of the current weak economic environment on corporate and consumer demand; and volatile fuel costs. The global economic crisis in 2009 resulted in a reduction in both passenger and cargo demand and a fall in average yields as passengers migrated to cheaper ticket classes, price competition increased, and fuel surcharges were lowered. As a result of these very weak industry conditions, Lufthansa reported total
