Lufthansa Group has unveiled new financial targets for the airline group, which include confirming previous reports that the company will cut jobs throughout the group, aiming to eliminate up to 4,000 administrative roles by 2030.
On September 29, 2025, just before the company’s Capital Markets Day event in Munich, Germany, Lufthansa Group announced that its previously announced measures to reorganize the group’s structure, which should result in “more networked cooperation between group functions and airlines to leverage synergies and increase efficiency,” would also significantly increase the company’s profitability by 2030.
The group’s medium-term financial targets now include an adjusted earnings before interest and taxes (EBIT) margin of between 8% and 10%, adjusted return on capital employed (ROCE) before taxes of between 15% and 20%, and adjusted free cash flow of over €2.5 billion ($2.9 billion).
Lufthansa Group’s adjusted EBIT margin in H1 2025 was 0.8%, an improvement of 1.7% compared to the same six-month period in 2024. Q2 2025 adjusted EBIT margin was 8.4%, up 1.5% year-on-year (YoY).
“Financial strength will continue to be the basis for achieving the financial targets,” it said, noting that it will continue to maintain a conservative minimum liquidity of between €8 billion ($9.3 billion) and €10 billion ($11.7 billion) to hedge against potential crises in the future.
It will continue to look out for shareholders, with Lufthansa Group pointing out that it will adhere to its existing dividend policy, distributing 20% to 40% of its consolidated net income to shareholders.
At the same time, the group has estimated that it would cut around 4,000 jobs by 2030, noting that more closely integrated operations “will lead to significant changes in the processes and structures governing cooperation between Group companies in the future.”
“On this basis, the Lufthansa Group is reviewing which activities will no longer be necessary in the future, for example, due to duplication of work.”
Lufthansa Group stated that digitalization and the increased use of artificial intelligence are expected to lead to greater efficiency throughout its processes, resulting in an estimated 4,000 roles being eliminated from the company. The majority of these cuts will occur in Germany, where the group has consistently complained about the high costs of operations, including taxes.
“The focus will be on administrative rather than operational roles,” Lufthansa Group said.
However, the company’s Capital Markets Day presentation highlighted that the aviation industry has faced labor challenges, noting that more than 50% of the global aviation workforce is expected to retire within the next 10 years, citing CAE’s Aviation Talent Forecast.
Currently, the Lufthansa Group has over 100,000 employees, having received more than 350,000 job applications in 2024.
The aforementioned reorganization drive was announced on September 12, 2025. At the time, the company promised, for example, that the network management for short and medium-haul flights would be done group-wide, which has already been achieved on the group’s long-haul network.
To manage cooperation within the group, the company would establish the so-called ‘Group Functions Boards,’ which would be comprised of representatives from airlines and group functions. A total of four boards will be established: Hub Steering, Technology, HR, and Finance, the group stated.
The target date to implement the structural changes is January 1, 2026.
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