The airline Lufthansa is expected on Monday to announce that it will lay off several thousand employees in an attempt to improve business efficiency, two sources familiar with this matter said.
Shares of the largest German European airline by sales rose by 3.4 percent, to the highest level in three weeks, after the news of the planned layoffs was published.
Analysts and investors in the last two years have criticized Lufthansa for its inability to reduce costs and develop its core business after it postponed the goal of achieving an operating profit margin of eight percent until 2025.
The group, after two profit warnings in 2024, promised investors that it would implement an ambitious turnaround program.
The airline intends to reduce the number of its administrative workers by 20 percent in the coming years, the two sources said, although the exact number of layoffs is still being determined.
The company stated that its recovery is progressing well, and analysts said that they expect the market to continue to pressure Lufthansa to show how it can build a more efficient group.
Some of them believe that, despite having fewer planes and even fewer summer activities than in 2019, the airline employs seven percent more people.
