Lufthansa to cut 4,000 jobs by 2030 in biggest reductions since pandemic
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The majority of the 4,000 administrative jobs to be cut will be in Germany.
PHOTO: AFP
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Frankfurt – Deutsche Lufthansa said it plans to cut 4,000 administrative jobs by 2030, the steepest reductions at Europe’s largest airline group since the pandemic ravaged the industry, as the carrier seeks to improve its profitability measures.
The job reductions will occur through digitalisation, automation and process consolidation, with a majority of reductions in Germany, according to a statement ahead of the company’s capital market day on Sept 29.
Lufthansa said it is seeking to achieve free cash flow of more than €2.5 billion (S$3.8 billion) from 2028 to 2030, and an adjusted return on capital employed of 15 per cent to 20 per cent in that period. The adjusted operating margin will stand at 8 per cent to 10 per cent in that time frame, the airline said.
The new targets come as chief executive officer Carsten Spohr is seeking to improve performance by reining in costs. In 2024, the group had to lower its guidance twice and it fell short of its medium-term margin targets laid out in 2021, as a series of strikes weighed on profitability.
Now the airline is facing a renewed threat of labour unrest. Pilots are set to conclude a strike vote on Sept 30 through Vereinigung Cockpit union, potentially setting the stage for fresh walkouts that could disrupt operations and financial performance.
Ongoing delays in aircraft deliveries are also pushing back Lufthansa’s fleet renewal and transition to more fuel-efficient models. The roll-out of the new Allegris premium cabin is facing hurdles. Certification for its business-class seats on the Boeing 787-9 is still pending, forcing the carrier to keep the seats blocked from passengers until approval.
Lufthansa said it expects to add more than 230 aircraft by 2030, including 100 long-haul jets. BLOOMBERG
