Lufthansa will slash 4,000 administrative jobs by 2030 as part of a sweeping digitalisation and automation push aimed at boosting efficiency, the German airline group announced on Monday.
The news lifted shares, which jumped 2% in early trade before settling 1.3% higher at €7.85 by 11:56 GMT.
The airline, which has faced rising labour costs and two profit warnings last year, is resetting its strategy after failing to hit an earlier 8% operating margin target. Chief Executive Carsten Spohr admitted Lufthansa still trails some rivals on financial performance.
At its first capital markets day in six years, the company set new mid-term goals, projecting an adjusted operating margin of 8–10% from 2028 and annual free cash flow above €2.5 billion. The programme is central to reviving its underperforming core airline and reassuring investors of progress.
Most of the job cuts will be in Germany, though Lufthansa plans to hire around 1,500 administrative staff at overseas hubs to offset costs. Reuters previously reported the airline was eyeing a 20% reduction in non-operational roles.
Unions have pushed back. Verdi criticised the cuts, citing higher European aviation taxes, while pilots are voting this week on possible strike action over pension changes. Executives have warned they may shift more jobs to lower-cost subsidiaries like City Airlines and Discover.
Despite the shake-up, Lufthansa remains in growth mode, planning to add over 230 new aircraft by 2030 and deepen cooperation with airlines such as ITA Airways to improve returns.
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