September 29, 2025, Hesse, Frankfurt/Main: A man walking in front of Luftansa logo at Frankfurt airport. Company sources have revealed that the group intends to cut its fifth managerial position in the coming years. The Executive Committee is expected to present in more detail a comprehensive plan for staff reductions this Monday. Photo: Hannes P. Albert/DPA (Hannes P Albert/Picture Alliance by Getty Images)
DPA/Picture Alliance via Getty Images
The Lufthansa Group is supplying banks to artificial intelligence, automation and digitalization to increase profitability by the end of the decade. The airline group announced its turnaround plan during Capital Market Day in Munich on Monday. However, it is also necessary to cut approximately 4,000 jobs by 2030. This replaces digital processes and AI applications.
AI and digitalization at the core of Lufthansa's turnaround strategy
Luftanza sets its medium-term target for 2028-2030 with an adjusted EBIT margin of 8-10%, adjusted return on employed capital of 15-20% and annual adjusted free cash flow of over 2.5 billion euros. These goals stated that “position the company for the future and achieving sustainable and attractive profits for shareholders.”
In its announcement, Lufthansa said that job cuts will be “due to duplication of jobs,” and that “the deep changes brought about by digitalization and the increased use of artificial intelligence will increase the efficiency of many sectors and processes.” The group emphasized that the cuts will focus on management staff rather than operational staff, “the majority of which is in Germany.” Ruftanza also said any reduction in jobs would be “consulted with social partners.”
The Lufthansa Group will rebuild IT functions and integrate them under one executive committee department. It combines “digital hangars” and “innovation and technology factories” into a central digital role. The airline group argues that the restructuring will “substantially expand digital expertise” across the group, while harmonizing the commercial and operational processes of hub airlines. The airline Lufthansa Group includes Lufthansa, Switzerland, Switzerland, Austrian, Brussels Airlines and ITA Airlines, along with low-cost carriers Eurowings and regional and holiday airlines Air Dolomites, Edelweiss and discovery airlines.
Hesse, Frankfurt/Main: Aircraft from Italian airline ITA(R) takes off over the Luftansa Boeing 747-8 at Frankfurt Airport. Lufthansa Group hopes to expand south and plans to acquire stakes in ITA. In the first step, Lufthansa hopes to win a 41% minority stake in Alitalia's successor. Photo: Arne Dedert/DPA (Photo by Arne Dedert/Picture Alliance by Getty Images)
DPA/Picture Alliance via Getty Images
In addition to pushing AI, Lufthansa has committed to more than 230 new aircraft by 2030, including 100 long-range jets. The group described it as “the largest fleet modernization in the company's history” and “a clear commitment to innovation, sustainability and premium quality.”
Lufthansa Group already deploys many AI applications
While the release of Capital Markets Day mentioned extensive AI in digitalization and AI, Lufthansa has already deployed many AI applications.
Lufthansa Technik uses AI for predictive maintenance. The company's Aviatar digital platform includes a tool called Technical Repeat Testing (TRE), which automatically analyzes aircraft technology logbooks to detect repeated defects. Lufthansa Technik described it as the first AI-based tool of this kind, making the trends of flaws more transparent and easier to act. Additionally, Lufthansa Technik has partnered with Microsoft to apply. 50 AI Use Cases for Microsoft Azurefrom optimizing maintenance to supply chain efficiency.
Lufthansa streamlined the booking process in its freight division by implementing AI and Robotic Process Automation. The system launched with Frankfurt scans unstructured reservation requests sent via email and automatically generates confirmed reservations within seconds.
Production – Hesse, Frankfurt/Main: The Luftansa Airbus A321-100 land at Frankfurt Airport, the Luftansa Boeing 747 must wait in front of the runway. Photo: Arne Dedert/DPA (Photo by Arne Dedert/Picture Alliance by Getty Images)
DPA/Picture Alliance via Getty Images
In terms of airport operations, Luftanza and Fraport are jointly deploying an AI-supported camera system known as the “Seer.” The system utilizes machine vision to monitor real-time turnaround activity, including refueling, catering, and baggage loading. According to Lufthansa, the goal is to make the turnaround process “more transparent, punctual and efficient.”
In commercial operations, Lufthansa applied AI to dynamic pricing. Through partnerships with software company professionals, the group uses AI to set subsidy prices, including baggage and seat upgrades, based on real-time demand and customer desire to pay.
“We can offer more tailored and flexible pricing options that meet the diverse needs of future travelers and drive customer-centric commercial offers,” said Stefan Kreuzpaintner, Senior Vice President of Commercial Customer Offers at Lufthansa Group.
Lufthansa is also experimenting Generation AI For customer interactions and internal processes.
The Eurowings plane flies into the blue sky above Innsbruck in Tyrol, Austria on September 22, 2024. The Eurowings plane approaches Innsbruck Airport. (Photo by Michael Nguyen/Nurphoto via Getty Images)
Nurphoto via Getty Images
The Innovation Runway Program included AI-driven travel advisors from the Eurowings Holiday Division. Tour operators were able to offer AI travel advisor “Holly” to their customers, providing “travel ideas tailored to individual preferences” and book a complete packaged vacation right away. To put these packages together, Holly considers the personal preferences of its customers and special requests such as “food preferences, sports activities, field trip ideas, physical limitations.” Compare these requirements with “billions of flight and hotel combinations” to create booking recommendations. Holly will also track hotel reviews and check out the right adventure excursions and car rental offers.
Similarly, Lufthansa Innovation Hub launches Swiftyan AI assistant that helps passengers search and book flights along with traditional search tools.
AI applications will expand with aviation
Lufthansa's AI strategy is consistent with the general trend of aviation to apply AI in streamlining the industry's numerous complex, data-intensive processes. Airlines are like that Turn your eyes to AI to optimize fares, personalize offers, manage flight disruptions, and reduce waste.
There was a significant setback due to excessive reliance on AI. for example, Air Canada's Lies Chatbothallucinating the facts, then provided passengers with misleading information about their bereavement policy. There were also some pushbacks to AI fare setting applications, as in recent cases. Delta Air Lines.
Delta Airlines passenger planes, Airbus A220-100 (front), Airbus A321-211 (second) are sitting at Lagardia Airport in New York City on April 18, 2025 (Photo: Daniel Slim/AFP)
AFP via Getty Images
Senator Reuben Gallego of Arizona called for Delta Social Media Platform x,say:
“We've found that Delta CEOs boast about using AI to find problems. This means you can narrow it down by penny. This isn't fair or competitive pricing. It's predatory pricing. It won't run away with it.”
At the scale proposed by Lufthansa, it has proven that most of today's aviation AI applications are useful and have not yet led to large-scale job cuts.
Lufthansa Group has a big bet that digital transformation will help you achieve your financial goals.
However, as the Air Canada Leide Chatbot case shows, AI tools help aviation handle the oceans of data that it navigates daily, but they cannot always reliably replace human judgment.
