Airlines

American Airlines cuts three cities from network due to pilot shortage

Due to poor demand and a continuous lack of pilots, American Airlines is terminating three more aircraft routes this spring.

The airline informed FOX Business of the choice in a statement delivered on Saturday. In a statement, American Airlines said that it has made the difficult choice to discontinue service in Columbus, Georgia (CSG), Del Rio, Texas (DRT), and Long Beach, California (LGB) this spring because of the regional pilot shortage that is affecting the airline industry and low demand.

A new issue for airlines is a shortage of aircraft that might increase travel costs.(Opens in a new browser tab)

From Columbus, Del Rio, and Long Beach, just eight aircraft connected to American Airlines leave each day. Every day, American Airlines offers more than 5,000 flights all over the world. Currently, American Airlines’ regional partners provide service to the three locations.

“We are working closely with our clients in these areas throughout this period and are incredibly appreciative of the attention and support our team members gave. The airline informed FOX Business that it would actively contact customers who were booked to go to offer them different options.

Since the outbreak of the epidemic, American Airlines has eliminated 19 cities from its itineraries. Because of the continuing need for pilots as well as fluctuating demand, other airlines have seen similar service reductions.

Airlines

German Carrier Lufthansa Plans for 20% Job Cuts in Administration

Lufthansa Airlines is reportedly planning significant job cuts in its administrative workforce. According to Manager Magazin, the German carrier intends to reduce administrative positions by 20% as part of its cost-cutting measures amidst an anticipated decline in earnings.

This reduction could impact approximately 400 jobs, the report revealed. While Lufthansa has not directly commented on the layoffs, the airline confirmed its goal of cutting administrative costs by 20% by 2028.

Russian Su-57 Fighter Secures First International Sale at Zhuhai Airshow

The strategy involves leveraging digital technologies, including artificial intelligence and automation. “A hiring freeze is currently in place for administrative roles at Lufthansa Airlines,” said a company spokesperson.

The staff reduction is expected to occur through natural attrition and age-related turnover, rather than forced layoffs. The internal projection cited by the magazine warns that Lufthansa could face an operating loss of €800 million ($843.92 million) by 2026 if no corrective measures are taken.

Lost Tool Found in Qantas A380 After 34 Flights

The report highlights the challenges companies face in aligning workforce requirements with current and future demands. Failure to adapt could necessitate drastic actions, such as restructuring and layoffs, which carry significant repercussions for both the organization and its employees.

As Lufthansa navigates these challenges, the airline appears committed to balancing cost efficiency with digital transformation to maintain its competitiveness in a rapidly evolving industry.