BERLIN: Lufthansa announced another package of restructuring measures on Tuesday, including a 20% cut in leadership positions and the reduction of 1,000 administrative jobs, as it battles with the fallout from the coronavirus pandemic.
Lufthansa said it would also cut the investment volume for new aircraft in half, with its financial plan allowing for up to 80 new aircraft for the group’s fleet up to 2023.
Lufthansa’s shareholders backed a 9 billion euro ($10 billion) government bailout last month, securing the future of Germany’s flagship airline after it was brought to the brink of collapse by the COVID-19 pandemic.
While Lufthansa retrenches, however, budget rival Wizz Air outlined plans to upgrade its expansion plans, underscoring the contrasting fortunes of airlines grappling with the coronavirus crisis.
Lufthansa’s first-quarter loss, which widened from 342 million euros a year earlier, was driven by writedowns of 266 million euros on its fleet. There were also writedowns on the book value of LSG North America and budget carrier Eurowings, of 100 million and 57 million euros respectively.
A slump in fuel hedging contracts was another 950 million euro burden on the bottom line.
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