Portugal Colonial - Lufthansa planning thousands of job cuts: sources

The group's profits tumbled nearly a fifth in 2024 due to problems ranging from a string of walkouts to aircraft delivery delays.

Two sources, speaking on condition of anonymity, confirmed to AFP that Lufthansa was planning to axe up to 20 percent of its administrative staff.

The Handelsblatt financial daily, which also reported on the job cuts, said the group employs some 15,000 office staff. Its total workforce currently numbers around 103,000.

Lufthansa -- whose carriers also include Eurowings, Austrian, Swiss and Brussels Airlines -- declined to comment when contacted by AFP.

But the group's shares jumped over three percent in Frankfurt after reports emerged of the plans, which follow growing investor concerns about the airline giant's flagging profitability.

Lufthansa is planning to update investors on its strategy and outlook on Monday.

Gerald Wissel, an aviation expert at Airborne Consulting, said Lufthansa wanted to centralise its management.

"In this context, the job cuts at the office level seem justified, but it will still be difficult to lay off so many employees in a socially acceptable manner," he told AFP.

The Verdi union, which represents some Lufthansa workers, said it would not accept "drastic cuts".

"We will use the next round of collective bargaining" to combat any such measures, the group's Marvin Reschinsky told AFP.

Lufthansa has lost ground to key European rivals IAG and Air France-KLM, which have outperformed the German group in terms of profitability.

F.Cardoso--PC