Lufthansa, Air France Seek Savings After Disruptions Hurt Profit
- Strikes, Middle East disruption hurt demand at both carriers
- Shares of Air France-KLM decline in Paris, Lufthansa steady
Deutsche Lufthansa passenger jets at Frankfurt Airport.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Deutsche Lufthansa AG and Air France-KLM are embarking on a cost-cutting drive after the European airlines suffered higher first-quarter losses in the wake of strike disruptions and restrained bookings caused by tensions in the Middle East.
The two companies announced the steps as they reported earnings for the first three months. Lufthansa said it will freeze projects and review hiring in some areas at its namesake airline brand, while Air France KLM said it’s putting a hold on adding support staff. Both airlines reported widening deficits for the quarter.