Lufthansa Bets Big On AI To Cut 4,000 Jobs

29 September 2025, Hesse, Frankfurt/Main: A man walks in front of a Lufthansa logo at Frankfurt Airport. Company sources have revealed that the Group intends to cut a fifth of its administrative jobs in the coming years. The Executive Board intends to present its comprehensive plans for staff cuts in more detail this Monday. Photo: Hannes P. Albert/dpa (Photo by Hannes P Albert/picture alliance via Getty Images)

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The Lufthansa Group is banking on artificial intelligence, automation, and digitalization to boost profitability by the end of the decade. The airline group presented a turnaround plan during its Capital Markets Day in Munich on Monday, which includes the largest fleet renewal in company history and ambitious financial targets. However, it also entails cutting around 4,000 jobs by 2030, which digital processes and AI applications will replace.

AI And Digitalization At the Core Of Lufthansa’s Turnaround Strategy

Lufthansa has set medium-term targets for the 2028–2030 period that include an adjusted EBIT margin of 8–10%, an adjusted return on capital employed of 15–20%, and annual adjusted free cash flow exceeding €2.5 billion. These targets, the company said, will “position the company for the future and achieve sustainably attractive returns for shareholders.”

In its announcement, Lufthansa stated the job reductions will come “due to duplication of work” and that “the profound changes brought about by digitalization and the increased use of artificial intelligence will lead to greater efficiency in many areas and processes.” The group emphasized that the reductions will focus on administrative rather than operational staff, “the majority of which will be in Germany.” Lufthansa also noted that any job cuts would be “in consultation with the social partners.”

The Lufthansa Group will restructure its IT functions, consolidating them under one Executive Board department. It will combine its “Digital Hangar” and “Innovation & Tech Factory” into a central digital role. The airline group claims this reorganization will “significantly expand digital expertise” across the group, while harmonizing commercial and operational processes among its hub airlines. The Lufthansa Group of airlines includes Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, and ITA Airways, alongside low-cost carrier Eurowings and regional and holiday airlines Air Dolomiti, Edelweiss, and Discover Airlines.

Alongside its AI push, Lufthansa is committing to more than 230 new aircraft by 2030, including 100 long-haul jets. The group described this as “the largest fleet modernization in the company’s history” and a “clear commitment to innovation, sustainability, and premium quality.”

Lufthansa Group Has Already Rolled Out Many AI Applications

Although the Capital Markets Day release mentioned digitalization and AI in broad terms, Lufthansa has already been rolling out a number of AI applications.

Lufthansa Technik is using AI in predictive maintenance. The company’s Aviatar digital platform includes a tool called Technical Repetitives Examination (TRE) that automatically analyzes aircraft technical logbooks to detect recurring defects. Lufthansa Technik described it as the first AI-based tool of its kind, making defect trends more transparent and easier to act upon. In addition, Lufthansa Technik has partnered with Microsoft to apply over 50 AI use cases on Microsoft Azure, ranging from maintenance optimization to supply chain efficiency.

In its cargo division, Lufthansa has implemented AI and robotic process automation to streamline booking processes. A system launched in Frankfurt scans unstructured booking requests sent by email and automatically generates a confirmed booking within seconds.

On the airport operations side, Lufthansa and Fraport have jointly deployed an AI-supported camera system known as ‘seer.’ The system utilizes machine vision to monitor real-time turnaround activities, including refueling, catering, and baggage loading. The goal, Lufthansa explained, is to make the turnaround process “more transparent, punctual, and efficient.”

In commercial operations, Lufthansa has applied AI to dynamic pricing. Through a partnership with software company PROS, the group uses AI to set ancillary prices—such as baggage or seat upgrades—based on real-time demand and customer willingness to pay.

“We are able to offer more tailored and flexible pricing options that meet the diverse needs of our prospective travelers, enhancing their overall travel experience and driving customer-centric commercial offers,” Stefan Kreuzpaintner, Senior Vice President, Commercial Customer Offer, Lufthansa Group, said in the announcement.

Lufthansa is also experimenting with generative AI for customer interaction and internal processes.

Its Innovation Runway program included an AI-powered travel advisor for its Eurowings Holidays division. The tour operator put its AI travel advisor, “Holly,” to work offering customers “travel ideas tailored towards individual preferences,” which they could immediately book complete package holidays. To put together these packages, Holly considers customers’ personal preferences and special requests, including “food preferences, sporting activities, excursion ideas or physical limitations.” It compares those requirements “with billions of flight and hotel combinations” to make booking recommendations. Holly also tracks hotel reviews and checks for appropriate adventure excursions and car rental offers.

Similarly, the Lufthansa Innovation Hub launched Swifty, an AI assistant that helps passengers search and book flights alongside traditional search tools.

AI Applications Expand In Aviation

Lufthansa’s AI strategy aligns with a general trend in aviation to apply AI in streamlining the industry’s numerous complex and data-intensive processes. Airlines are turning to AI to optimize fares, personalize offers, manage flight disruptions, and cut waste.

There have been notable setbacks resulting from an over-reliance on AI. For example, Air Canada’s lying chatbot, which supplied a passenger with misleading information on its bereavement policy after hallucinating facts. There has also been some pushback on AI fare-setting applications, as was the case recently with Delta Air Lines.

U.S. Senator Ruben Gallego of Arizona called out Delta on the social media platform X, saying:

“Delta’s CEO just got caught bragging about using AI to find your pain point – meaning they’ll squeeze you for every penny. This isn’t fair pricing or competitive pricing. It’s predatory pricing. I won’t let them get away with this.”

Most current aviation AI applications have proven useful and not yet led to massive job cuts, on the scale Lufthansa is proposing.

Lufthansa Group is placing a big bet that digital transformation will help it achieve its financial targets—even if it requires reshaping its workforce.

However, as the Air Canada lying chatbot case demonstrates, while AI tools can help process the oceans of data that aviation navigates daily, they cannot always reliably replace human judgment.