Low-cost airlines get set to challenge European carriers

European network carriers including Air France-KLM Group and Deutsche Lufthansa face a heightened challenge from Ryanair-led discount airlines and Gulf operators serving routes to Asia, analysis by Amadeus IT Holding SA shows.

Low-cost carriers, led by Ryanair, lifted their share of European traffic 4% to 38% in 2012, while travel from Europe to Asia via the hubs of Emirates, Qatar Airways and Etihad Airways PJSC grew 20%, according to data from Madrid-based Amadeus’s global booking system.

Air France, Lufthansa and Iberia are among former flag-carriers revamping short-haul operations in an effort to end losses and stave off the advances of Ryanair and its peers.