Airline Group Will Shed Jobs Over the Next Five Years as Demand Surges

With the power of artificial intelligence by its side, the Lufthansa Group will be cutting around 4,000 jobs over the next five years. The majority of these will be Germany-based administrative roles as the airline works to digitalize and consolidate work through the spike in air travel demand.

The carrier says it is increasing integration among its member airlines, which include Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways. According to the group, AI and digital systems will help eliminate duplication of work and simplify processes. Lufthansa employed more than 101,000 people worldwide in 2024, meaning the cuts make up just under four percent of its force.

The decision comes as the airline reaps the benefits of a tight air travel market. Aircraft and engine supply constraints have kept flight capacity limited, and this supply is being far surpassed by passenger demand. That imbalance has kept planes full and revenue strong.

Lufthansa expects “significantly increased profitability” by the end of the decade and has raised its financial targets to match. From 2028 onward, the group now projects an adjusted operating margin between 8 and 10 percent and adjusted free cash flow exceeding 2.5 billion Euros annually. This is a big shift from last year, in which the airline missed profitability targets due to strikes, rising competition, and aircraft delivery delays.

Part of the strategy also involves fleet modernization. Lufthansa hopes to take delivery of more than 230 new aircraft, including 100 long-haul jets, by 2030. The group dubbed the effort the largest fleet renewal in its history, aimed at lowering operating costs while meeting rising travel numbers.

The move to trim jobs with the help of AI puts Lufthansa on the same path as many others, though admittedly its scale is far ahead industry competitors. Klarna, for example, has credited artificial intelligence with reducing its workforce by about 40 percent.

FMI: www.lufthansa.com