Lufthansa plans to reduce its administrative workforce by approximately 4,000 by 2030. Most of the jobs will be lost in Germany. The jobs will become redundant because processes “will be digitized, automated, and consolidated,” says the German airline group. Brussels Airlines expects a “limited impact”.

At the same time, the group also announced “the largest modernization of the fleet in the company’s history.”

The elimination of 4,000 jobs corresponds to approximately 4% of the total workforce, which stood at around 103,000 at the end of June. It is also the most significant intervention since the COVID-19 pandemic. Most of the jobs will be lost in Germany, primarily at the group’s headquarters in Frankfurt, through natural attrition.

In the coming years, Lufthansa also wants to manage its hub airlines – Lufthansa, Swiss, Austrian Airlines, Brussels Airlines, and ITA Airways – more centrally. Their short- and medium-haul networks will be managed centrally, as has long been the case for the long-haul networks. The group hopes this will lead to greater productivity and efficiency. Each of the airlines must also develop an efficiency program, including cost savings, but the bulk of the effort must come from the leading Lufthansa brand.

230 new aircraft

The group has also announced “the largest modernization of its fleet in the company’s history.” By 2030, there will be 230 new aircraft, including 100 long-haul aircraft – especially ‘point-to-point ‘ airline Eurowings, which will be provided by a lot of new planes, namely 40 new Boeing 737 MAX.

This should also benefit the company’s finances, for example, because they consume less fuel (up to 30%) and are cheaper to maintain than older aircraft.

The long-haul fleet will also evolve from 13 different aircraft types to 9. Models such as the Airbus A340 and Boeing 767 will be phased out.

Increased financial target

Overall, this should result in higher financial targets. For example, the adjusted EBIT margin for the entire group is expected to be between 8% and 10% during the period 2028-2030. The previous target was 8%. In 2024, that margin was 4%.

Meanwhile, there is a risk of social action at Lufthansa. Pilots are voting until Tuesday on a possible strike at the core Lufthansa brand and at Lufthansa Cargo. The dispute is over pensions. Lufthansa has already described the union’s demand as unaffordable.

Limited impact at Brussels Airlines

The Lufthansa Group, which carried 131 million passengers in 2022, employed approximately 103,000 people as of the end of June, including nearly 3,800 at Brussels Airlines.

“We are unable to share any further information at this time, including about a possible impact on Brussels Airlines, although we assume that this will be limited,” says the Belgian subsidiary of the Lufthansa Group.