Lufthansa Group said during its capital markets day on Monday (September 29) that it plans to cut around 4,000 jobs by 2030.
The company said it will primarily cut full-time administrative positions, adding that AI and other digitalisation investments will allow for the staff reduction. With these cuts, the group expects around €0.3bn in EBIT uplift after a one-time €0.4bn restructuring expense.
The group's capital markets presentation cited AI as a key driver in increasing its future profitability and improving cost efficiencies. The group will pioneer the use of AI in revenue management and network optimisation. For example, it is developing generative AI technologies to support dynamic flight pricing and event-driven demand forecasting.
In addition, the group is looking to streamline its widebody fleet, which is expected to provide fuel savings and lower MRO costs. As of today, the company has 13 widebody aircraft types in operation across its six passenger airlines.
By the end of the decade, it aims to have around six to nine widebody aircraft types. The presentation showed it aims to retire the A340-600, A330-200, and 767-300 by next year, followed by the 747-400 and A340-300 the year after, and the 777-200 by 2028.
The company plans to retain the A380 aircraft, though its plan for the type has not yet been finalised. The group currently operates the double-deck jet in eight routes — six to the US and the remaining two to Bangkok and Delhi.
By 2030, the group is aiming to have 58% of its fleet comprised of next-generation aircraft. The fleet is currently 27% next-generation aircraft. The group expects over 230 new aircraft by 2030, including 100 long-haul jets. The fleet's widebody share is expected to grow from 25% to 28% by the end of the decade.
With these initiatives, Lufthansa is targeting an adjusted EBIT margin of 8-10% for 2028-2030. Additionally, by that period, the company is aiming for an annual free cash flow of over €2.5bn.