Lufthansa reaches crisis deal with union to cut 200 million euros in costs

BERLIN (Reuters) – German airline Lufthansa said on Wednesday it had reached a new deal with trade union Verdi to cut 200 million euros (£178 million) in costs in return for making no compulsory redundancies in 2021.

Lufthansa warned last week it would burn through more cash in the fourth quarter than in the third and that further restructuring measures would weigh on its results as it struggles to cope with the effects of the COVID-19 pandemic.

The airline and its subsidiaries, Eurowings, Swiss, Austrian and Brussels Airlines, are slashing their schedules, fleet and staff, with air travel not expected to recover to pre-pandemic levels before 2025. It aims to cut 22,000 full-time jobs.