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CEO of Lufthansa says that the turnaround plan is progressing.

Carsten Spohr, chief executive of Lufthansa Group, told reporters in Frankfurt that the group's turnaround plan is progressing, but 2025 and 2026 are transitional years, as it attempts to stem spiraling costs.

The airline group warned twice about its profit in 2024, as its core airline struggles with rising costs and labor disruptions. Meanwhile, Eurowings, the more successful airline within the group continues to grow.

"It is obvious that the performance of recent years has been poor. It was therefore obvious to us that the year 2014 would be another year of transition. Spohr added, "But it's a year for transformation towards higher performance."

"I think I can say also that this turning point has been reached in 2025." He said that flight operations have become more stable with only 1% of flights cancelled, and the customer satisfaction rate has increased.

Last year Spohr announced that he would turn the flag carrier around by 2026. He also launched a major restructuring of the Group to bring costs under control.

Spohr said that Lufthansa would seek to better integrate with the other members of the group, including Swiss Airlines, Austrian Airlines, and Brussels Airlines, to streamline operations.

He said that the cheaper operations of its two newer subsidiaries, City Airlines and Discover, are helping to grow the group.

The cost disadvantage for the classic division is so large that the growth of the group is now taking place in other areas. Spohr stated that they would like to find a way to lower these costs.

The Lufthansa pilots' union has threatened to strike in protest at the airline's pension plan.

The upcoming deliveries of new Airbus aircraft and Boeing jets are also expected to boost growth. 60 jets should be delivered by the end 2026. This month, the first Boeing 787 Dreamliner with Lufthansa’s luxurious Allegris cabin arrived.

Since years, airlines have complained about the high cost of operating in Germany. Ryanair announced earlier this year it would stop some operations due to the high airport fees.

Spohr stated that the group's fleet will be based in locations other than its German hubs of Frankfurt and Munich, as it expands its multihub model to places such as Vienna and Brussels and continues its acquisition of Italian carrier ITA Airways.

This could help the group balance its costs better as it continues to seek out less expensive markets for growth.

(source: Reuters)