October 24, 2020

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Lufthansa, which ran aground with a loss of 1.5 billion, is cutting 22,000 jobs

Lufthansa, which ran aground with a loss of 1.5 billion, is cutting 22,000 jobs

The knife has to penetrate deep into German Lufthansa, one of the largest airlines in Europe. While the company posted a profit of € 226 million in the second quarter of last year, it suffered a loss of € 1.5 billion in the same period this year. And so radical restructuring is inevitable.

Since most flights had to stay on the ground, the German air carrier has already done a lot to save costs. As a result, shorter working hours were introduced throughout the company, so that less wages had to be paid. Several thousand jobs have been lost.

Overall, costs were reduced by 59 percent in three months. In addition, like its main competitors in Europe such as Air France-KLM, the airline received billions in government support.

None of this was enough to save the company in its current form. Lufthansa only carried 4 percent of passengers last year. Almost half of the flights still running remained empty. And according to the company, it will take at least 2024 before as many tickets are sold again as before the Corona crisis.

“Industry has to rethink”

In the meantime, up to 22,000 jobs have to be cut. This means that after the outbreak of the pandemic, more than every sixth job in the company will disappear. In addition, considerably fewer devices are required. 100 aircraft from the Lufthansa Group’s fleet are sold.

“We are convinced that the entire aviation industry must adjust to the new normal,” wrote the company in a statement on the quarterly results. “The pandemic offers our industry a unique opportunity to transform itself: to question the status quo and, instead of striving for growth at all costs, create value in a sustainable and responsible way.” Details of sustainability plans are not included in the message.