The FAA has slapped a $6.4 million fine on the German airline for operating some 900 flights between Germany and the cities of San Diego and Philadelphia. The FAA claims the routes were flown without authorization.
Whether the fines will stand or not—Lufthansa has 30 days to respond—is just another bit of bother for the airline.
For example, profit margins have been off across the European market, especially when compared to North America and the rest of the world.
According to statements from the investment bank Credit Suisse “Margin degradation has had a material impact on confidence in the sector, and for Lufthansa in particular.”
Labor has been a problem for Lufthansa. Relations with several key unions are strained, and a November strike caused the company to cancel some 1,300 flights.
Still, market analysts, in reports issued in November, are optimistic about German airlines going into 2020