NEW YORK (TheStreet) -- Deutsche Lufthansa (DLAKY) may begin low-cost, long-haul flights under a new brand as part of plans by new company CEO Carsten Spohr to battle competition from Middle East carriers and no-frills airlines, Reuters reports.
The long-haul plan would mark a major shift for the company which has remained a full-service airline.
The move also represents a high-risk route that few others have taken, Reuters noted.
The challenges facing Lufthansa, which warned on profit last month, are numerous - Middle East carriers are expanding aggressively on long-haul travel, low-cost carriers are gaining customers in short-haul and cargo markets are in the doldrums, Reuters said.Shares of Deutsche Lufthansa are up 1.37% to $20.71 in afternoon trade. Must Read: Warren Buffett's 25 Favorite Growth Stocks