Lufthansa Unveils Strategic Overhaul to Boost Profits by 2030
Lufthansa Group has announced a strategic overhaul, aiming to streamline operations and boost profits. The plan includes job cuts, primarily in administrative roles, and discussions with trade unions and works councils.
The Group revealed its plans at the Capital Markets Day in Munich. It aims to integrate airlines and group functions more tightly, reducing duplication and accelerating digital tool and AI use. Despite the job cuts, Lufthansa aims to preserve customer-facing services.
By 2030, Lufthansa plans to eliminate around 4,000 jobs worldwide, with most cuts in Germany. These will focus on administrative roles, with frontline operations largely unaffected. The Group has pledged to carry out redundancies in dialogue with unions and works councils, although specific details about these discussions remain unclear.
Lufthansa has set ambitious financial targets for 2028-2030. These include an adjusted EBIT margin of 8-10%, adjusted return on capital employed of 15-20%, and annual adjusted free cash flow of over €2.5 billion. The Group also plans to maintain a conservative liquidity buffer of €8-10 billion, keep an investment-grade credit rating, and uphold its dividend policy.
Lufthansa Group's strategic overhaul aims to create leaner structures capable of delivering higher returns. Despite job cuts, the Group seeks to maintain customer-facing services and has pledged to carry out redundancies in dialogue with unions and works councils. The success of these plans will be measured against ambitious financial targets set for 2028-2030.
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