Deutsche Lufthansa AG, Europe’s second-largest airline, said losses at the Germanwings discount unit will shrink this year while costs for upgrading cabins and lounges will top 500 million euros ($682 million) through 2015.
Deutsche Lufthansa AG announced the surprise departure of Chief Executive Officer Christoph Franz, who will become chairman at Swiss drugmaker Roche Holding AG, leaving the German airline in limbo as it works on a turnaround.
Deutsche Lufthansa AG, Europe’s second-biggest airline, said it will hold passenger capacity steady this year and won’t update its intercontinental fleet until a 1.5 billion-euro ($2 billion) savings plan is completed.
Deutsche Lufthansa AG expects its short-haul flight network to be profitable as of 2013, Sueddeutsche Zeitung reported, citing an interview with Carsten Spohr, head of the company’s German airline operations.
Deutsche Lufthansa AG plans cost savings of almost one billion euros ($1.3 billion), Sueddeutsche Zeitung reported an e-mailed preview of an article to appear tomorrow, citing a letter from Chief Executive Officer Carsten Spohr to employees.
Deutsche Lufthansa AG , Europe’s second-largest carrier, named Christoph Franz to succeed Wolfgang Mayrhuber as chief executive officer and announced jet orders valued at 3.5 billion euros ($4.7 billion).
Deutsche Lufthansa AG plans to suspend its dividend for the first time since 2010 to preserve cash as the German airline rejuvenates the fleet and pushes ahead with its most ambitious cost-savings program to date.