MUNICH: Lufthansa will cut 4,000 administrative jobs by 2030 and set higher profitability targets, the German airline group said on Monday, as it seeks to boost efficiency through digitalisation and automation.
Lufthansa has struggled to cut costs and pursue growth as it has dealt with labour challenges in recent years.
In 2024, it issued two profit warnings and dropped a target of reaching an 8% operating margin by 2025.
On Monday, the group said it had not abandoned the 8% target although it has now been pushed back to later in the decade as part of new mid-term targets for 2028 and 2030.
Lufthansa is pursuing an ambitious group-wide turnaround programme. In particular, it is looking to revive its “problem child” core airline as it struggles to clamp down on rising costs in the German market.
It now expects its adjusted EBIT margin to reach 8-10% from 2028, up from a previous goal of 8%, and aims for adjusted free cash flow of more than 2.5 billion euros ($2.9 billion) a year, Lufthansa said at its first company-wide capital markets day in six years.
Reuters reported last week that Lufthansa planned to cut about 20% of its non-operational staff.
The reductions will be made mainly in Germany and in consultation with social partners, the company said.
The group plans to add more than 230 new aircraft by 2030 and deepen cooperation among its airlines to improve returns.
That integration means it can invest more heavily in newer, more profitable subsidiaries and move resources away from cost-heavy parts of the company if needed, executives told Reuters.
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