Lufthansa Steps Up Measures to Cut Costs

Deutsche Lufthansa AG warned that compulsory dismissals are likely in Germany amid slow progress in talks with unions, stiffening its tone as it braces for years of reduced demand, Bloomberg News reported. Europe’s biggest airline posted an adjusted operating loss of 1.7 billion euros ($2 billion) in the second quarter -- its biggest ever -- wrapping up a dismal set of results for carriers in the region after the coronavirus grounded virtually all passenger flights. Lufthansa has set a goal of slashing 22,000 full-time positions as it trims the fleet by at least 100 planes to clamp down on expenses and pay back some 9 billion euros in state aid. Like full-service peers IAG SA and Air France KLM, the German company faces a slow recovery because the long-haul flights it most profits from remain largely idled amid travel restrictions and flareups in the coronavirus pandemic. Read more

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