"Lufthansa" (Lufthansa) plans to cut 4,000 jobs over the next five years. The German concern adopted this plan as a response to the difficulties it faces, writes ARD.
The depreciating fleet, the difficult economic situation in Germany and high personnel costs are just some of the reasons. After the pandemic, the airline has never been able to reach the same level of profit and passengers that it enjoyed before the crisis.
2025 is better for "Lufthansa", but far from optimal
Nevertheless, this year "Lufthansa" is marking a more successful year than the previous one. However, the profit of 1.4 billion euros is far below the company's capabilities. For comparison: in 2018 it was 2.2 billion euros.
The company's hopes are now mainly linked to subsidiaries such as "Eurowings" or "Swiss Airlines". In the first half of 2025, the company reported a profit of 127 million euros, while in the same period in 2024, losses amounted to 265 million euros. If this trend continues in the third quarter, which has the highest turnover and covers the holiday season, "Lufthansa" will probably report significant growth in its annual results.
According to the assessment of Yvon Ziegler from the Frankfurt University of Applied Sciences, however, there is no particular reason for joy. The better results are not due to the savings program, but mainly to the low price of kerosene, which has fallen by 14 percent compared to 2024.
No savings have been made in terms of personnel and materials, on the contrary - in both areas costs have increased by about 10%. “This means that if the price of kerosene rises again, then in the medium and long term the prospects are bad”, the aviation expert tells ARD.
According to financial expert Camelia Canoli, however, the situation is more optimistic. Within the framework of the savings program, structures in the field of information technology are currently being united, which were previously taken over separately by each airline. "This will, of course, contribute to improving financial results," the expert told the publication.
Old planes, high costs
The emblem of the concern "Lufthansa Airlines" continues to cause concern among shareholders - in the first half of this year it lost 300 million euros. The fleet is outdated, and the older the planes, the higher the costs for them, explains Cannoli. "Lufthansa" would like to limit these costs with new planes. They would also offer significantly more passenger seats, so that more people can be transported.
But the major manufacturers "Boeing" and "Airbus" also have problems. Ordered planes rarely arrive on time, and both companies are still struggling with delays from the pandemic, Yvonne Ziegler said. In the case of "Boeing", serious technical shortcomings were added to this, which are slowing down production even more.
Another problem is the use of different aircraft. Unlike other airlines, the concern is not limited to using a few types, and having more models requires more expensive maintenance. This also makes flights more inflexible, since pilots cannot fly every type of aircraft.
The state of the German economy is not flourishing
The difficult economic situation in Germany is also affecting "Lufthansa". The number of business travelers is decreasing, and they are an extremely important and loyal customer of the company. For this, the concern relies on politicians in Berlin. "But despite the requests, the ruling coalition has not yet canceled the increase in the air transport fee," says Ziegler.
Meanwhile, airport charges and air security fees have also increased and "this, of course, does not make life easier for the airline."
Problems in international markets too
The international situation is also causing concern for the company. Asia and North America - traditionally its strongest markets - are experiencing a decline. According to Yvonne Ziegler, this is due to the chaotic policies of Donald Trump in North America. Many tourists are repelled by the fact that they encounter so many problems when entering the country.
On routes to Asia, the problem is completely different: “There "Lufthansa" is at a disadvantage because, unlike many competitors such as "Turkish" and the Gulf airlines, it cannot fly via Russia." Anyone who wants to fly as short as possible chooses another airline. That is why "Lufthansa" has already cut some of its flights.
"Lufthansa" relies on its subsidiaries
Due to the difficulties in passenger transport, aviation expert Ziegler believes that it is a sensible strategy to continue to strengthen successful divisions within the group such as "Lufthansa Technik". The company recently announced that it wants to further strengthen its activities in the arms market.
"In the past, it has always been a trump card for "Lufthansa" that it has subsidiaries," says Ziegler. The cargo business was a big support during Covid, for example, just like the technology sector.
The two experts emphasize that it is now important for the company to modernize. It will have to implement staff reductions - despite the resistance of the employees, that is clear. The pilots recently voted by a large majority for strike action. They want the company to contribute more to the pensions of its employees. But the most important thing for the group is to be able to master its complex structure and numerous subsidiaries.
Author: Paula Protzen (ARD)