Lufthansa Group Will Lay Off 4,000 Employees By 2030

Radical Decision from Lufthansa Group: 4,000 Layoffs

Germany's leading airline company, Lufthansa Group, announced an important strategic plan at the Capital Markets Day held in Munich. The company stated its goal to lay off 4,000 people from its administrative processes by 2030.

New Financial Targets and Expectations

Lufthansa's medium-term financial targets continue to rise. The company aims to increase its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin to between 8 and 10 percent starting from 2028. Last year, the adjusted EBITDA is expected to exceed 1.6 billion euros. Furthermore, adjusted free cash flow is projected to exceed 2.5 billion euros annually.

Liquidity and Dividend Policy

To take precautions against potential economic crises, a minimum liquidity level of 8 to 10 billion euros is targeted to be maintained. The company also announced that it will continue to distribute between 20 and 40 percent of the group's profit in its current dividend policy.

Passenger Demand and Aircraft Procurement Processes

With high passenger demand, despite delivery delays experienced by aircraft manufacturers such as Airbus and Boeing, Lufthansa's average yields are expected to increase in the coming years.

New Aircraft and Fleet Modernization

Looking ahead, Lufthansa plans to take delivery of more than 230 new aircraft by 2030. 100 of these will be allocated for long-haul flights, and thanks to new-generation aircraft, fuel consumption is expected to decrease and operating costs are expected to fall.

Union Negotiations and Potential Strike

On the other hand, the Independent Cabin Crew Organization (UFO) and the German pilot union Vereinigung Cockpit (VC) have brought up a strike vote due to the negative outcome of collective bargaining negotiations. The vote is expected to take place tomorrow.