Lufthansa plans to slash costs and cut back on future projects as a “new reality” of lower corporate travel and increased competition drives down fares from post-pandemic highs, according to a letter to staff.
The lead carrier of the wider Deutsche Lufthansa AG group said that while its costs have risen sharply, unit revenue has been lower than expected as customers aren’t prepared to pay higher fares, according to the letter from unit Chief Executive Officer Jens Ritter seen by Bloomberg News. With corporate travelers in short supply, the airline isn’t able to compensate for seasonal demand fluctuations, Ritter wrote.