Competition through airlines have been strictly increasing. A lot of offers approaching the customers, where they can get satisfaction in just paying low price tickets. Lufthansa, as one of the airlines, was forced to “remove” their first class offer due to weak demand on most routes.

Lufthansa prefers to focused on earning revenues from premium cabins instead of maintaining high-priced first class seat, which will eventually save up until $68 million. This strategy of seeking low cost success has been a right decision. Lufthansa seeks low cost success (Video) Why? Instead of helping the firm to reduce costs, it helps to boost up the selling tickets and to accelerate the break-even point of selling business or premium tickets – after experiencing loss towards the first class offers. Looking up towards the production costs, which reaching millions US dollar, it might takes times and in a need of selling high volume of tickets to increase the sales revenue.

With the incoming profit after its break-even point , Lufthansa promised to upgrade its airplane as a whole, providing major fleet upgrade and satisfy customers even more in the future.

Source: http://www.businessweek.com/articles/2013-10-04/lufthansa-finds-first-class-seats-dont-always-pay#r=nav-r-story