Lufthansa business class flights booming

German airline Deutsche Lufthansa AG has launched all-business class nonstop winter service between Boston and Munich with surprising success, despite a recession-driven drop in spending on luxury travel.

Lufthansa began the flights on Oct. 26 and plans to fly them once-daily through March 28. Matthew Brelis, a spokesman for the Massachusetts Port Authority, which runs Logan International Airport in Boston, said the occupancy load on Lufthansa's Business Jet service was 70 percent in November and climbing. More specific figures are unavailable from the federal Bureau of Transportation Statistics because they are covered by a six-month start-up confidentiality period, a bureau spokesman said.

But in one measure of the route's success, Lufthansa is switching from aircraft outfitted with 48 business class seats to planes with 56 business class seats, Brelis said, which "shows demand for that product and route." A Lufthansa spokeswoman could not be reached for comment, but Henry H. Harteveldt, Forrester Research Inc.'s principal airline analyst, agreed that using a larger aircraft signaled healthy passenger demand and will also help make the flights more profitable by using a more fuel-efficient plane.

Travel consultants said the popularity of the service shows some passengers are still willing to splurge on convenience. Lufthansa's seven- to nine-hour flights offer such features as seats that recline into nearly 6-foot-long beds.

"While the economy is certainly weak, this reflects that business travel is still taking place and there are companies and people out there who can and will pay the business class price," said Harteveldt. "It reflects that Boston remains a very strong international gateway."

As the closest big US city to Europe, Boston has been poised to benefit from US airlines shifting seat capacity from domestic routes to the more lucrative international flights, and from foreign carriers launching additional overseas service. Boston has found its flights attracting a wide range of executives and other well-heeled passengers who on average are willing to pay three times as much for first-class or business class seats so they aren't cramped in coach.

According to Massport, the average fare Boston to Munich is $953, but premium-class passengers on average pay $2,785.

But price could still trump luxury as fliers rein in expenses during a recession. According to the International Air Transport Association, business and other premium ticket travel fell sharply in October - down 6.9 percent compared to the same month a year ago - and is forecast to sink well into 2009. Survey results released last month by Orbitz for Business and Business Traveler Magazine echoed those findings, with 79 percent of travelers saying they felt pressured to curb travel expenses in 2008 and 34 percent saying their employers will not allow them to expense flight upgrades in 2009.

That's why the well-received launch of Lufthansa's winter service is surprising.

Massport encouraged Lufthansa to extend its summer leisure travel service year-round, saying there would be enough interest from business travelers in the winter.

Airport officials told Lufthansa there is demand for 112 passengers per day each way between Boston and Munich.

Lufthansa will revert to using 221-seat planes with three seating classes in the summer, when interest grows from vacationers on tighter budgets.

Nicole C. Wong can be reached at nwong@globe.com.