Lufthansa has become the first major carrier to downsize in anticipation of a “significant decline” in air travel when the coronavirus crisis is over.
The Lufthansa Group announced a permanent reduction in capacity on Tuesday, with cuts in the fleets of every airline.
In a statement, Lufthansa said: “The executive board of Deutsche Lufthansa does not expect the aviation industry to return to pre-coronavirus crisis levels swiftly.
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“It will take several months until global travel restrictions are completely lifted and years until worldwide demand for air travel returns to pre-crisis levels.
“Based on this evaluation, the board has decided to implement further extensive measures to reduce the capacity of flight operations and administration long term.”
Lufthansa said the decisions “will affect almost all flight operations”, but insisted it would reduce operations “in a socially responsible manner” through collective agreement with staff unions.
Fleet reductions
The German carrier will permanently decommission 18 long-haul aircraft – six Airbus A380s, seven A340s and five Boeing 747-400s – and withdraw 11 A320s from short-haul operations.
The fleet reductions will mean reduced capacity at Lufthansa’s Frankfurt and Munich hubs, although the A380s were already scheduled for return to Airbus in 2022.
Regional subsidiary Lufthansa Cityline will lose three Airbus A340 aircraft which operated long-haul flights to tourist destinations.
Low-cost subsidiary Eurowings’ fleet will be cut by phasing out 10 Airbus A320s and reducing the long-haul business and consolidation of flight operations speeded up.
Restructuring ‘intensified’
Restructuring at group carriers Austrian Airlines and Brussels Airlines will also be “intensified” and include fleet reductions, and deliveries of new aircraft to Swiss will be delayed and older aircraft phased out.
Lufthansa said it aims “to offer as many people as possible continued employment within the Lufthansa Group.
“Talks with unions and workers councils are to be arranged quickly to discuss, among other things, new employment models to keep as many jobs as possible.”
The group also announced the termination of all wet-lease agreements with other airlines.