Lufthansa has announced plans to cut 3,500 airline jobs, the Financial Times reports.
According to the report, the firm’s operating loss of €381 million in the first quarter has been worse than expected. It compares to the €273m loss which analysts had been expecting for the period. The airline said the loss was mainly down to high fuel costs, adding that EU taxes and charges are also a problem.
However, there are positive signs, as Lufthansa kept to its previous earnings guidance for the year. The airline is anticipating an operating profit “in the mid three-figure million euro range” in 2012, the Financial Times reports.
The Financial Times quotes a spokesperson from the airline as noting that the economic mood overall has lightened but that economic uncertainty is still making it difficult to predict demand for services.
According to the report, Lufthansa will cut 3,500 administrative airline jobs, which constitutes three per cent of its workforce. The move is part of a €1.5 billion money-saving initiative set to be carried out over the next three years.
Christoph Franz, chief executive of Lufthansa, is quoted by the Financial Times as saying, “Higher taxes, fees and charges put a massive strain on our quarterly results … We cannot wait until politicians recognize the damage that one-sided taxes and charges do to aviation and to Europe’s reputation as a place to do business.”