FRANKFURT (Reuters) -Germany's Lufthansa wants to increase profitability at its core brand next year after it is set to return to the black this year, Lufthansa Airlines' CEO Jens Ritter said on
Lufthansa Plans Profitability Increase by 2026, CEO Reveals
FRANKFURT (Reuters) -Germany's Lufthansa wants to increase profitability at its core brand next year after it is set to return to the black this year, Lufthansa Airlines' CEO Jens Ritter said on Thursday.
Lufthansa Airlines will achieve all targets for the current year in its cost-cutting and service programme that runs until 2028, "and with that, we are back on track to return to profitability," Ritter told journalists.
The main Lufthansa brand has been called the group's "problem child," a label that it is has struggled to remove despite the turnaround plan, which is designed to cut costs and centralise operations across its multi-hub operation.
Improvements in operational stability, which have reduced compensation costs for flight cancellations and delays, have contributed to the positive development, he added.
The coming year will be "focused on profitability and productivity", said Ritter. Many company agreements on the ground and in the cockpit and cabin have been renegotiated and will enable more productive staff deployment from 2026, he added.
Lufthansa has also changed regulations to allow for more flexible staffing and is examining whether the number of reserve aircraft could be reduced and thus deploy more aircraft.
The company also wants to earn more with its ongoing fleet renewal: The new Boeing 787 and Airbus A350 long-haul jets are equipped with more comfortable seats, and catering is to be improved in all booking classes on long-haul routes from 2026.
(Reporting by Ilona Wissenbach, writing by Miranda Murray, editing by Thomas Seythal)
