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Lufthansa plans for compulsory job cuts

Lufthansa plans for compulsory job cuts

Mubasher: Lufthansa has given its workers a notice for compulsory job cuts after incurring EUR 1.7 billion operating losses in a single quarter due to the coronavirus (COVID-19) disruptive effects on the aviation industry, Reuters reported.

The company, which previously announced its plans to lay off 20% of its leadership positions and 1,000 administrative jobs, seeks to cut 22,000 full-time jobs.

The German airline referred that the number of its employees has already declined by 8,300 by the end of June.

Between April and June, Lufthansa has carried only 4% of the total number of passengers in 2019 due to the suspension of air flights amid COVID-19.

The plunge in the number of passengers has resulted in a quarterly adjusted operating loss of EUR 1.7 billion, which is the company's worst performance in 65 years.

The airline has also expected that the number of passengers will rise to only about 50% by the end of 2020 and two-thirds of last year’s level in 2021.

Meanwhile, the airline's CEO, Carsten Spohr, disclosed on Thursday that demands for air travel are not expected to rebound to pre-crisis normal levels until 2024.

The company's expectations are more pessimistic than other airlines, including  Air France which projects to fly 80% of its pre-crisis flights in 2021.

Lufthansa was mainly hit by the suspension of long-haul flights to important destinations, including the US where the number of COVID-19 cases is rising.

To alleviate the COVID-19 impact, the German airline has secured a EUR 9 billion bailout in June from the government.