MIAMI – Still feeling the crippling effects of the pandemic, Lufthansa Group (LH) subsidiary SWISS (LX) may soon announce more job cuts.
According to Reuters, LX is again planning to cut more jobs in addition to 1,000 already axed out of a 9,000 workforce, mainly by attrition, since October 2020. From this jobs cut, to be carried out on a two years time span, 500 are already acted on while on the new staff, the reduction size LX CEO was not immediately able to give a precise number.
“How many additional positions we will potentially have to cut is something I can answer only in the second quarter. We’re in the middle of the analysis” was the comment from Dieter Vranckx on this subject.
Dim Forecast on Business Travel
SWISS has a dim forecast on future business travel as companies are massively reverting to virtual meetings and conferencing to avoid meetings in person and possible contamination. Once established this way of conducting business may permanently be adopted to reduce costs but, at the same time, negatively impacting airlines revenues.
Dieter Vranckx is basing its future policy on an air traffic recovery not exceeding 65%, compared to 2019 figures, by taking advantage of vaccination campaigns as well as health travel passes such as EU GreenPass or IATA TravelPass.
SWISS has plans to start testing GreenPass of the Zurich (ZRH) to London (LHR) run starting in April but the success of this travel method is highly dependent on vaccine doses availability, a critical issue for many countries at this moment. For this, reason, LX CEO, insists that non-vaccinated people must be allowed to travel and points out the importance of Covid-19 testing.
On the financial side, Dieter Vranckx stated that the US$1.590bn (CHF1.5bn) state-guaranteed loan is sufficient for the present moment while adding that flights being operated are profitable and cargo business growing.
Featured image: Swiss Boeing B777-300ER HB-JNL – Photo : Milan Witham/Airways