Lufthansa: towards higher profitability with digitalization and layoffs
Lufthansa announced on Monday that it will cut around 4,000 administrative jobs by 2030, while setting more ambitious financial targets. The move is part of a comprehensive strategy in which digitalization and automation will play a key role in increasing efficiency.
According to the airline, it is targeting an adjusted EBIT margin of 8 to 10 percent from 2028, which is higher than the previously communicated 8 percent level. It also expects to achieve an adjusted free cash flow of more than 2.5 billion euros per year.
According to Reuters, the planned cuts could affect around 20 percent of non-operational staff and will mainly take place in Germany. The company stressed that it intends to implement the changes in consultation with social partners during the process.
In addition to cost-cutting and efficiency-enhancing measures, the Lufthansa Group is also expanding its fleet: more than 230 new aircraft will be put into service by 2030. In addition, cooperation between the group’s airlines is being strengthened, which will further improve profitability.
The German airline’s strategy is therefore twofold: by optimizing background tasks and accelerating technological developments, they aim to achieve closer market competitiveness, while also strengthening their positions in the global market with the expanding fleet and the group’s synergies.
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