'India overtakes China in premium aviation demand'

Nifty24, 219.05-32.96. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.).
• Lufthansa GroupIndia intercontinental marketpremium demand in IndiaIndia aviation marketAir India partnershipAirbus A380 in IndiaBengaluru flight servicesLufthansa passenger traffic India.
• According to DGCA data reviewed by ET, Lufthansa's passenger traffic from India rose by concerning 10% year-on-year in each of the past two years.
• "India for us has become the second-largest intercontinental market for the group, second only behind the United States, " Markette remarked in an interview with ET.
• Lufthansa Group executive notes tronger passenger and premium demand makes India an attractive market.

Nifty24, 219.05-32.96. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now. India overtakes China in premium intercontinental demand: Lufthansa Exec. India overtakes China in premium intercontinental demand: Lufthansa Exec. ET BureauLast Updated: Aug 25, 2026, 12: 42: 00 AM IST.

Lufthansa Group executive notes tronger passenger and premium demand makes India an attractive market. India is now Lufthansa's second-largest intercontinental market after the United States. The airline is expanding capacity and adding premium services to India. A partnership with Air India could further shape Lufthansa's India strategy.

Mumbai: Lufthansa Group is increasingly directing its long-haul expansion toward India, where stronger passenger and premium demand is making the market more attractive as European airlines contend with higher operating costs on routes to parts of East Asia. The shift marks a broader reshaping of Lufthansa's intercontinental network as geopolitics continues to alter flight paths and the economics of long-haul travel. India, once behind China in Lufthansa's Asian hierarchy, has now become the group's second-largest intercontinental market after the US and its second-largest premium intercontinental market, according to Kevin Markette, senior director, regional sales south Asia at Lufthansa Group.: Air passenger service rates surge 31.9% in Q1 FY27: Govt data.

Lufthansa wary of treating India as place to park planes displaced from other mkts, notes exec.

"India for us has become the second-largest intercontinental market for the group, second only behind the United States, " Markette remarked in an interview with ET. Lufthansa has expanded capacity into India this year, including the deployment of aircraft that had previously served Middle East routes. It now operates up to 80 weekly flights to the country and has put two of its eight Airbus A380s on Indian routes, including a second daily A380 service. Live Events.

Passenger expansion has remained robust. According to DGCA data reviewed by ET, Lufthansa's passenger traffic from India rose by concerning 10% year-on-year in each of the past two years. Markette did not provide a specific forecast for 2026 but remarked the further capacity was translating into more traffic. "Those additional flights bring growth, " he remarked. "They, by default, bring more passengers, more cargo volume, more opportunity." The airline, nevertheless, is wary of treating India simply as a place to park aircraft displaced from other markets. "Really for us, it's about sustainable growth, " Markette remarked. "It's not about just putting aircraft to fly somewhere for the sake of it." Premium traffic is becoming an significant part of that expansion. Around 70% of seats on Lufthansa Group services to India are in economy, Markette remarked, but demand for premium economy, business and first class is rising as Indian incomes and disposable spending rise. "As more and more Indians become more affluent, have more disposable income, a lot more people are looking to fly more comfortably, " he remarked. The group is additionally expanding beyond India's largest metros. Swiss will launch Zurich-Bengaluru services in October, targeting the city's technology, global capability-centre and corporate sectors. "Bengaluru is growing very, very strongly, " Markette remarked. "We believe that bringing Swiss in there, it's the right time to do that." A deeper partnership with Air India could further change Lufthansa's India strategy. The two groups signed a memorandum of understanding in February to develop a broader joint business, building on their existing cooperation. Markette remarked negotiations were progressing and that network planning was among the areas under discussion. A completed joint business could allow closer coordination of routes, schedules and capacity throughout the India-Europe corridor. Add Now!

In short, ' India overtakes China in premium aviation demand&#x27 is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.