German airline Lufthansa has announced plans to eliminate 4,000 administrative positions by 2030. This will be the largest reduction in Europe's largest carrier since the pandemic, according to Bloomberg. At trading in Frankfurt on September 29, Lufthansa shares rose by 1.8%, but then lost part of the growth.

The reductions will be achieved through digitalization, automation and process consolidation, mainly in Germany, the company said in a statement. The goal is to improve profitability. The company expects to achieve free cash flow of more than €2.5 billion between 2028 and 2030 and an adjusted return on invested capital of 15-20%. The operating margin in this period should be 8-10%.

Analysts and investors have criticized Lufthansa over the past two years for failing to cut costs and grow its core business after it delayed its margin target, Reuters notes. The airline has twice lowered its forecast for 2024 and missed medium-term targets announced for 2021, largely due to a series of strikes.

Now Lufthansa is once again facing the threat of labor disputes: the Vereinigung Cockpit union is finalizing the pilots' vote on a new strike, which could lead to disruptions in operations and worsen financial results. Additional difficulties are created by delays in aircraft deliveries, which is hampering fleet renewal and the transition to more fuel-efficient models.

This article was AI-translated and verified by a human editor

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