Lufthansa makes £535m saving
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The Lufthansa Group has made EUR619 million (GBP535m) in savings through its cost-cutting initiative SCORE, it revealed today.
The group doubled its target after initiating 800 measures last year which included better flight coordination, adjusting capacities and reducing admin.
High fuel prices were the primary cause of blame for the group’s 36.1% drop in its operating result to GBP453m, while revenue was up 4.9% to GBP2.6bn.
Its figures were dented by the sale of bmi to IAG and its sold shares of Amadeus. It is now aiming for an operating profit of GBP1.9bn by this time next year.
“With our SCORE programme, we have launched a comprehensive, if not one of the largest, process of change ever seen in the history of Lufthansa. In addition to measures concerning costs and income, we have set up a number of major strategic projects, such as the new Germanwings, the turnaround of Austrian Airlines and the pooling of administrative activities in the areas of HR, purchasing and finance,” said Christoph Franz, chairman and CEO of Deutsche Lufthansa.
“With SCORE, we are creating the financial basis for our extensive investment plans. Our aim: we will make Lufthansa strong. We want to expand our position as Europe’s leading aviation group and considerably boost our profitability in every business segment,” he added.