German airline group Lufthansa announced on Monday that it will eliminate 4,000 administrative positions by 2030 as part of a sweeping plan to streamline operations and raise profitability. The decision comes as the company intensifies efforts to digitalise and automate processes while grappling with cost pressures and labour challenges.
The move, revealed at Lufthansa’s first capital markets day in six years, aims to reassure investors that its turnaround programme, launched in 2023, is firmly on track. The airline has endured a turbulent period, issuing two profit warnings last year and shelving its near-term ambition to reach an 8% operating margin.
Chief executive Carsten Spohr admitted the group has fallen behind rivals. “We definitely lag behind some of our competitors when it comes to financial performance,” he told investors. However, he stressed that Lufthansa has not abandoned its 8% margin goal, but has instead extended the timeline, with new targets now set for 2028 and 2030.
Under the revised strategy, Lufthansa expects an adjusted operating margin of 8–10% from 2028 onward, alongside adjusted free cash flow of more than €2.5 billion annually. The cuts to administrative staff — representing around 20% of non-operational employees — will be concentrated in Germany and carried out in consultation with labour representatives. The group said managing costs has been far easier at international bases such as Rome, home to its minority-owned subsidiary ITA Airways.
Analysts have long flagged Lufthansa’s high structural costs, particularly at its core airline, which executives themselves have labelled a “problem child.” Rising expenses have limited the company’s ability to expand profitably, fuelling investor concerns. Spohr and his management team emphasised that the latest measures are designed to tackle these weaknesses head-on.
Beyond job reductions, Lufthansa outlined ambitious growth plans, including the addition of more than 230 new aircraft by 2030. The group will also deepen cooperation across its network of airlines, shifting resources toward subsidiaries that deliver stronger returns while scaling back investment in more costly parts of the business. Executives said this integrated approach would boost flexibility and efficiency, positioning the group to compete more effectively in a challenging market.
The announcement marks one of the most significant strategic resets in Lufthansa’s recent history, underscoring both the difficulties the airline has faced and its determination to improve its financial standing. While the job cuts highlight the scale of restructuring ahead, the group hopes its investment in new aircraft and automation will deliver long-term benefits.
Lufthansa’s renewed targets suggest that the path to recovery will take several more years, but management insists that by the end of the decade, Europe’s largest airline group will be stronger, leaner, and more profitable.
