Lufthansa Group has announced significant job reductions, planning to cut 4,000 positions by 2030. This strategic move is driven by advancements in artificial intelligence, digitalisation, and the consolidation of operations across its various member airlines. Despite robust demand for air travel and forecasts of increased profitability, the airline group is streamlining its workforce, primarily impacting administrative roles in Germany.
Key Takeaways
Lufthansa Group plans to eliminate 4,000 jobs by 2030.
The cuts are primarily aimed at administrative roles in Germany.
Advancements in AI and digitalisation are key drivers for the restructuring.
The airline anticipates significantly increased profitability by the end of the decade.
A major fleet modernisation, including over 230 new aircraft, is also planned.
Efficiency Through Technology
Lufthansa is intensifying the integration of its constituent carriers, including Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways. The company stated it is reviewing activities that will become redundant due to duplication of work. Profound changes brought about by digitalisation and artificial intelligence are expected to enhance efficiency across all business areas and activities.
Financial Outlook and Fleet Modernisation
The strategic outline was presented to investors and analysts in Munich, where the group highlighted strong demand for flights. This demand is occurring against a backdrop of limited flight availability due to strained supply chains for aircraft and engines, leading to a tight market that keeps planes full and boosts revenue. Lufthansa Group expects significantly increased profitability by the end of the decade. Furthermore, the airline is undertaking its largest fleet modernisation in history, with over 230 new aircraft scheduled for delivery by 2030, including 100 long-haul aircraft.
Context of Job Cuts
Lufthansa has faced challenges in cost-cutting and pursuing growth in recent years, including labour issues. The company issued two profit warnings last year and missed its operating margin target. The current restructuring, which includes the job cuts, is part of its "Ambition 2030" program aimed at creating sustainable value for customers, shareholders, and employees. The airline has set new financial targets for 2028 to 2030, expecting its adjusted operating margin to reach 8% to 10% and generating over €2.5 billion in adjusted free cash flow annually.