Lufthansa considers reducing fleet and more job cuts as losses mount

Currently the Airline is incurring losses of about €500 million a month

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With no hope of demand picking up this holiday season, Lufthansa is seriously considering reducing its fleet of planes by 150 in the next five years. The Airline had already announced 22,000 job cuts earlier and is now planning to slash more full-time jobs as its losses have mounted to almost €500 million a month. It is estimated that one in five managerial jobs will be impacted in the first quarter of 2021.

Earlier, it had planned to reduce its fleet by 100 aircraft in the face of the unexpected crisis in the aviation space, with international flights being grounded for months and borders remaining sealed.

About nine billion euros were given to Lufthansa as governmental aid in June.

A final figure, in terms of job losses, is yet to be revealed. However, the Airline is in discussions with labour unions to ensure that maximum jobs are saved.

Come October, Germany will impose new rules, which will require travellers from risk zones to compulsorily quarantine themselves for at least five days before getting themselves tested. This will drastically affect the number of intra-Europe weekend travellers and shoppers, whose numbers had started to revive in the summer.

Lufthansa had already eliminated six A380s from its fleet earlier this year, and is now considering doing the same with the remaining eight. It is also planning to put 10 of its A340-600s out of use.

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