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[BUSINESS] · Germany, Austria · 2 sources

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Lufthansa Group evaluates centralized restructuring via Project Nexus

Lufthansa Group is advancing its turnaround program initiated in 2024, aiming for a gross result improvement of 1.5 billion euros by 2026 and 2.5 billion euros by 2028. To achieve these targets, the company is considering a centralized management initiative internally known as ‘Project Nexus’.

This project aims to consolidate previously decentralized functional areas, such as resource management and flight crew scheduling, across Lufthansa Classic, City Airlines, and Discover Airlines. The goal is to eliminate redundant structures and reduce personnel costs. However, the move is reportedly controversial within the company as it may impact the competitive dynamics previously encouraged between different units.

The restructuring comes as the core Lufthansa Airlines division faced financial pressure, reporting an operating loss of 480 million euros in the first half of 2026, partly attributed to geopolitical tensions in the Middle East. Additionally, the group is shifting flight capacities toward lower-cost subsidiaries and adjusting its domestic feeder network in Germany.

Entities

City Airlines · Discover Airlines · Lufthansa Airlines · Lufthansa Group