Transportation
Lufthansa Starts Savings Program as Pressure Holds on Prices
- Airline says reaching breakeven at main unit will be difficult
- Company cut outlook earlier this month amid falling yields
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Deutsche Lufthansa AG said it will embark on a savings program that includes phasing out about 50 older long-haul aircraft in the latter part of the decade as the German airline group struggles with overcapacity that’s weighing on ticket prices.
The company will reduce fleet complexity by decommissioning its four-engine Airbus SE A340-300, A340-600 and Boeing Co. 747-400, as well as the smaller Airbus A330-200 by 2028, it said on Wednesday as it reported earnings. The company said it will also improve the network “in line with the stronger seasonalization of demand.”