Lufthansa announces additional reduction in fleet and payroll

German carrier Lufthansa has announced an additional reduction to its fleet and workforce as international air traffic continues to face the impact due to the coronavirus (Covid-19) pandemic.

The move is part of the third package within the group-wide ‘ReNew’ restructuring programme approved by Deutsche Lufthansa’s executive board.

Under this restructuring, the medium-term fleet planning is expected to see a permanent, group-wide capacity reduction of 150 aircraft by the middle of this decade starting from group fleet, including wet-leased aircraft.

The carrier has also transferred eight A380s and ten A340-600s to long-term storage. These were previously intended for flight service but have now been removed from planning.

The aircraft will be reactivated once the market recovers while the remaining seven Airbus A340-600s will be permanently decommissioned.

The carrier has already removed six Airbus A380s from service in the spring.

The decisions are expected to lead in an additional impairment of up to €1.1bn.

In addition to the fleet reduction, the carrier expects further adjustments to 22,000 full-time positions that were previously identified as surplus.

Lufthansa will reduce management positions by 20% in the first quarter of next year. The administrative office space will be reviewed worldwide and reduced by 30% in Germany.

The permanent staff restructuring within flight operations will be further adjusted subject to market development.

In July, Lufthansa launched a second set of measures under its comprehensive restructuring programme, where leadership positions throughout the group will be cut by 20% while Deutsche Lufthansa’s administration positions will be downsized by 1,000.