How Will Deutsche Lufthansa (DLAKY) Stock Respond to A Low-Cost, Long-Haul Flight Plan?

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.

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