Airline Blames AI For Job Cuts

AI, digitalization cited as drivers of Lufthansa Group restructuring.

Lufthansa to cut jobs with AI push
[Credit: Lufthansa]
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Key Takeaways:

  • Lufthansa plans to eliminate 4,000 administrative jobs by 2030, leveraging increased automation, artificial intelligence, and digitalization to enhance efficiency and boost profitability.
  • The job cuts will specifically target administrative functions across the Lufthansa Group, including subsidiaries like SWISS and Austrian Airlines, while operational staff such as flight crews will remain unaffected.
  • The decision has drawn criticism from the German trade union Verdi, which warns of "drastic cuts" for office workers and attributes the situation partly to rising operating costs, urging government support for the aviation industry.
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Germany’s flag carrier Lufthansa confirmed it will shed 4,000 administrative positions by 2030 as part of a broad efficiency drive. The airline said it will achieve this aim by eliminating duplicate work while automating tasks across its subsidiaries. Much of this will be enabled through increased use of artificial intelligence and digitalization.

The Lufthansa Group, which includes SWISS, Austrian, Brussels Airlines, and Eurowings, said operational staff such as flight crews will not be affected. Instead, the focus will remain on administrative functions, with the aim of tightening central control and boosting profitability. The company also announced plans to expand its maintenance and logistics businesses into the defense sector while strengthening Eurowings’ role within the group.

In a statement, the airline told the Associated Press that “profound changes brought about by digitalization and artificial intelligence” would bolster efficiency.

German trade union Verdi criticized the decision, warning of “drastic cuts” that will impact office workers. Union representative Marvin Reschinsky said rising costs, including everything from airport fees to environmental regulations, are partly responsible for the situation and called on the federal government to support the aviation industry. Lufthansa posted strong earnings during the post-pandemic travel rebound, but 2024 was marked by inflation, labor strikes and higher operating expenses.

Matt Ryan

Matt is AVweb's lead editor. His eyes have been turned to the sky for as long as he can remember. Now a fixed-wing pilot, instructor and aviation writer, Matt also leads and teaches a high school aviation program in the Dallas area. Beyond his lifelong obsession with aviation, Matt loves to travel and has lived in Greece, Czechia and Germany for studies and for work.

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Replies: 1

  1. Avatar for JustMe JustMe says:

    AI, the modern, convenient scape goat for cost cutting.

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