Carrier is booking “large declines in income” on routes
Lufthansa says it will have to cut costs in its profitable long-haul business. The airline plans to cut long-haul unit costs by 10% by 2015 and 20% by 2025, compared with 2011, it said in an employee newsletter circulated yesterday. The reasons: high fuel prices and competition from Gulf carriers.
“Lufthansa is booking increasingly large declines in income on long-haul routes, even on trunk routes such as Beijing or Shanghai,” the airline admits.
The cuts will be part of a new company-wide savings project, SPRINT, which aims to boost annual earnings by €1.5 billion by the end of 2014.
[pictured: Lufthansa A380 and new Terminal A-Plus, Frankfurt; courtesy Lufthansa]