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.

Must Read: Warren Buffett's 25 Favorite Growth Stocks

 
DLAKY Chart

DLAKY data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Hurricane Irma Has Sent Airline Ticket Prices Skyrocketing

Barcelona Terror Attack: Leisure and Travel Stocks Hit

Economics, Metals Push European Markets Higher

The Stock Market Is Feeling Happy Again