Move is part of plan to raise annual profits by €1.5 billion
In an effort to boost profitability, Lufthansa has decided to halt its fleet expansion and improvement program. According to a letter to employees by Carsten Spohr, a board member of the company, the move is part of a three-year plan to raise annual profits by more than €1.5 billion.
“We will not go to the Supervisory Board with the proposal of selecting and ordering a modern intercontinental fleet until the […] measures begin to bear fruit,” he wrote.
Lufthansa German Airlines will not increase the number of seats available in 2012. It will then keep capacity growth to a maximum of 4% in 2013 and 2014.
[pictured: Lufthansa 747; photo by John Crozier, copyright The Boeing Company 2011]