This archive report was first published on 12 June 2020.
Published on June 12, 2020, Lufthansa's announcement comes as the airline industry struggles to cope with the effects of the COVID-19 pandemic.
As part of its restructuring efforts, Lufthansa plans to cut 22,000 jobs, with almost half of the job cuts expected to occur in Germany. The airline aims to reach an agreement with workers' unions by June 22, 2020.
At the peak of the lockdowns, around 700 of the group's 763 aircraft were grounded, resulting in up to 87,000 workers being placed on a government-funded scheme. Even after the crisis is over, the group plans to permanently cut 100 aircraft from its fleet.
Earlier this month, Lufthansa received a $10.8 billion bailout from the German government, which gave the government a 24% stake in the airline. This stake could rise to 25% plus one share in the event of a takeover attempt, and the government will also have two seats on Lufthansa's supervisory board.
Lufthansa is the flag carrier and largest German airline, operating over 700 aircraft and serving as the second-largest airline in Europe in terms of passengers carried. Its subsidiary passenger airlines include Austrian Airlines, Swiss International Air Lines, Brussels Airlines, and Eurowings.
In the first quarter of 2020, Lufthansa posted a net loss of $2.4 billion, significantly impacted by the COVID-19 pandemic. This compares to a net loss of $384 million over the same period last year.
