Lufthansa Group expects to cut 4,000 jobs by the end of the decade, as part of a strategic plan to consolidate operations and increase efficiency.

The group intends to integrate its five network airlines – Lufthansa, Swiss, Austrian Brussels Airlines and ITA – more closely, adjusting their organisational structure.

“This will clarify responsibilities, promote collaboration and speed up decision-making processes,” it states.

Group-wide control of its overall network, including short- and medium-haul services, will increase productivity and efficiency, it adds.

The company aims to introduce more than 230 new aircraft, including 100 long-haul airframes, by 2030 but points out that the current delays in aircraft supply is having a “positive impact” on average yields and capacity utilisation.

Lufthansa Group, which outlined the plans ahead of a 29 September capital markets event, says the company is continuing to implement existing transformation programmes, and is also rapidly integrating ITA following its investment in the Italian carrier.

Lufthansa-c-Lufthansa

But it acknowledges that the tightening of co-operation between group companies will lead to “significant changes” in processes, particularly as a result of digitisation and the increasing use of artificial intelligence.

“Lufthansa Group is reviewing which activities will no longer be necessary in the future – owing to, for example, duplication of work,” it states.

It expects to eliminate 4,000 jobs worldwide by 2030, most of which will be in Germany, with the losses focused on administrative rather than operational roles.

Lufthansa Group has set new medium-term financial targets, intended to “exceed” prior performance and generate “sustainably attractive returns” for its shareholders.

Over the course of 2028-30 it is looking to achieve an adjusted EBIT margin of 8-10%, an adjusted return on capital of 15-20% before tax, and an adjusted free cash flow of more than €2.5 billion ($2.9 billion) per year.

“Financial strength will continue to be the basis for achieving the financial targets,” says the group, adding that it will maintain a “conservative” minimum liquidity of €8-10 billion.

Along with its network airlines, the group plans to concentrate on point-to-point services through its Eurowings leisure division – which is undergoing a fleet renewal with Boeing 737 Max jets – as well as maintenance and freight operations with Lufthansa Technik and Lufthansa Cargo.





Source link

Posted in
Uncategorized
Related Posts
Limousine Comments are Closed

Plan the perfect NYC Memorial Day weekend

Pack only what you need and avoid overpacking to streamline the check-in and security screening…

News Comments are Closed

LA’s worst traffic areas and how to avoid them

Consider using alternative routes, such as Sepulveda Boulevard, which runs parallel to the 405 in…

Safran tasks new UK centre with electric and composite research for future single-aisle

French aerospace firm Safran is internationalising its technology research operation by setting up a centre…

Leonardo Helicopters’ Proteus technology demonstrator poised to make first flight for UK Royal Navy

Leonardo Helicopters has edged a step closer to flying its AW09-based Proteus technology demonstrator for…

Brazil test fires MBDA Meteor missiles from Gripen E fighter in major milestone

Brazil has notched a major milestone in its campaign to phase in Saab’s latest Gripen…

Aeroflot Group discloses acquisition of 747 and 737 freighters

Aeroflot Group has disclosed that eight aircraft – including freighters – have been introduced to…

Airbus cuts full-year delivery target by 30 aircraft

Airbus has cut its full-year delivery target to 790 commercial aircraft, down from the original…

Hi Fly claims Antarctic first with A330 follow-up to A340 landing

Portuguese wet-lease specialist Hi Fly has flown an Airbus A330-300 to Antarctica, claiming a first…

Austria to field 12-strong Leonardo M-346FA fleet from 2028 under $1.75 billion deal

Austria has finalised a roughly €1.5 billion ($1.75 billion) deal that will lead to its…

Avincis and DHC partner on CL-series waterbomber support

Aerial services provider Avincis is to collaborate with De Havilland Canada (DHC) on a series…

MBDA Meteor missile integration nears flight-test phase with Lockheed Martin’s stealthy F-35A

MBDA’s Meteor beyond-visual-range air-to-air missile has moved a step closer to commencing flight trials with…

Jekta hydrogen-electric amphibian aircraft scale model testing begins January 2024

Swiss start-up Jekta plans next month to begin flight testing a scale model of the…

Post a comment

Your email address will not be published.