Lufthansa announced on Monday that it will eliminate 4,000 administrative roles by 2030 and raise its profitability targets, part of a broader push to improve efficiency through digitalisation and automation.

The news lifted investor sentiment, with shares climbing 2 per cent in early trading before easing to a 1.3 per cent gain at 7.84 euros early this morning.

Lufthansa has faced difficulties reducing costs and driving growth in recent years due to persistent labour challenges.

The airline issued two profit warnings last year and abandoned its goal of achieving an 8 per cent operating margin within that period.

“We definitely lag behind some of our competitors when it comes to financial performance,” Chief Executive Carsten Spohr told the capital markets day audience.

On Monday, Lufthansa said its 8 per cent operating margin goal remains in place but has been delayed to align with new mid-term targets set for 2028 and 2030.

The airline is moving forward with a broad turnaround strategy launched last year, using its capital markets day to reassure investors of steady progress.

Central to the plan is stabilising its core airline, often labelled the group’s “problem child,” as it works to rein in mounting costs that have drawn concern from analysts and investors.