Lufthansa sets out cost cutting measures to ensure Eurowings return to profit

Lufthansa AG has announced that its budget airline Eurowings will switch its focus to short-haul flights in a bid to cut costs by 15% and return to profit to 2021. The group issued a profit warning on June 16, citing falling revenues at Eurowings as a major reason why the revenue forecast dropped sharply in the second quarter of 2019. Eurowings, will exclusively utilise Airbus A320, but will no longer focus on long-haul flights, with transfer of this moving toward the Lufthansa group, who will take responsibility. “With the airlines in our group we are excellently positioned in our home