Lufthansa to cut costs on its long-haul business

Germany’s national flag carrier Lufthansa recently announced it is planning to drastically reduce its expenses on its profitable long-haul business.

According to the airline, Lufthansa flights are facing stiff competition from Middle East carriers. The airline stated that apart from the tough competition Lufthansa also wants to cut costs at its long-haul business to cope with ever increasing fuel prices.

Lufthansa disclosed that it is planning to lower unit costs at its long-haul business by 10 percent by 2015. The airline further stated that by 2025 it is aiming to reduce its unit costs by 20 percent.

The airline in a statement said that it is currently booking increasingly large declines in its earnings on long-haul routes, including trunk routes like Shanghai and Beijing.

The airline has named the new savings project SPRINT. The company-wide plan has been brought into effect to significantly its annual earnings by 1.5 billion Euros by the end of 2014.