The experienced midfielder feels the German champions deserved to progress to the final but believes Barca's cycle of dominance is not over just yet
Tito Vilanova's men were beaten 3-0 in Wednesday's return at Camp Nou after previously losing the first leg 4-0 in Munich and Xavi feels Bayern were superior over two games and deserved to reach the final.
"Of course I am feeling down because the team gave everything, especially in the first half. We have to congratulate Bayern, they are in extraordinary form. They were better than us and are worthy finalists," Xavi told the official Uefa website.
"We noticed the players missing in defence. It is not an excuse but we are talking about absences that weaken the team.
"That said, Bayern were superior. They dominate all aspects of the game right now."
The influential midfielder also had his say on German football's dominance in the Champions League this term.
"On the subject of whether German football is better than Spanish, I do not think that it is fair to base that on two ties but Bayern, just like Dortmund, are worthy finalists."
Xavi then went on to stress that Barcelona's cycle is not over yet as he believes they can still be successful with their current team.
"This Barcelona team has a future. I am always optimistic. This team can go on."