Lufthansa announces cost-cutting at flagship airline as profits drop

Despite strong demand for tickets and record sales, Lufthansa posted a drop in profits in the summer, the German airline group reported on Tuesday, reported dpa.

Cost-cutting measures are now coming for the flagship Lufthansa Airlines brand, with the aim of improving adjusted operating profits (EBIT) by €1.5 billion by 2026, according to Lufthansa chief executive Carsten Spohr.

In addition to Lufthansa, the company also owns subsidiaries Austrian Airlines, Brussels Airlines, Discover Airlines, Eurowings and SWISS, as well as aircraft maintenance and services firms.

For the current year, Spohr said he continues to expect a group-wide adjusted operating profit of €1.4 billion to €1.8 billion, after having cut the company's annual financial target for the second time in the summer.

In the travel-heavy third quarter, Lufthansa achieved an adjusted operating profit of €1.3 billion, 9% less than a year earlier.

Lower ticket prices and increased costs more than eroded the growth in revenue.

The bottom line was a profit of €1.1 billion, 8% less than in the previous year.

Lufthansa Airlines in particular posted lower profits due to a lack of new aircraft and higher personnel costs.

Lufthansa management now plans to transfer more of the brand's flights to other airlines with lower operating costs, both within the company and outside, and to automate parts of its operations to a greater extent.