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Lufthansa to Cut 4,000 Jobs and Target Higher Profitability by 2030

Lufthansa to Cut 4,000 Jobs and Target Higher Profitability by 2030.

Lufthansa is embarking on a major restructuring plan aimed at boosting efficiency and long-term profitability. The German airline group announced it will cut around 4,000 administrative jobs by 2030, mainly in Germany, as part of a broader digitalisation and automation strategy. Executives emphasized that the reductions will be carried out in consultation with social partners to ease the transition.

The airline has faced challenges in recent years, including rising costs and labor disputes, which have hindered its ability to meet growth and profitability targets. In 2024, Lufthansa issued two profit warnings and dropped its earlier goal of achieving an 8% operating margin by 2025. However, the company reaffirmed its commitment to that benchmark, pushing it back to later in the decade.

At its first capital markets day in six years, Lufthansa unveiled new mid-term financial targets. By 2028, the group aims to reach an adjusted EBIT margin of 8–10%, surpassing its previous goal of 8%. It also projects adjusted free cash flow exceeding €2.5 billion ($2.9 billion) annually, signaling stronger long-term resilience.

Part of the turnaround effort focuses on its flagship airline, described internally as a “problem child,” which has been weighed down by high costs in its home market. To counter this, Lufthansa plans to deepen cooperation among its carriers, shift resources to more profitable subsidiaries, and invest strategically in growth areas.

The group is also preparing for future demand with plans to add more than 230 new aircraft by 2030. This fleet expansion is expected to enhance efficiency, reduce operating costs, and improve returns across the network.

According to reports, Lufthansa’s planned job cuts represent roughly 20% of its non-operational staff, underscoring the scale of its transformation. With a sharpened focus on digital tools, automation, and strategic investments, the airline hopes to secure a more competitive and profitable future in the global aviation industry.

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