Lufthansa to cut 3,500 jobs worldwide

German carrier Deutsche Lufthansa AG will slash 3,500 administrative jobs worldwide in the coming years, as part of cost cutting measures.

Faced with fierce competition and higher fuel costs, Lufthansa today reported a 379 million loss in the first three months of 2012.

Unveiling cost-cutting steps, the airline said the proposed moves are expected to result in the loss of 3,500 full-time jobs in administrative departments worldwide.

"We can only safeguard jobs for the long term and create new openings if we reorganise the administrative functions and accept job losses now," Deutsche Lufthansa AG's Chairman of Executive Board and CEO Christoph Franz said in a statement.

Fierce competition as well as increased fuel costs, the air traffic tax imposed in Germany and Austria and costs of emissions trading in force in Germany since 2012, all impacted the company's quarterly performance.

According to the company, double-digit million euro savings are expected from the optimisation of local traffic within the airline group and expenses in administrative areas are to be cut by 25 per cent.

"Higher taxes, fees and charges put a massive strain on our quarterly result. It was well down on last year despite record revenue.

"We cannot wait until politicians also recognise the damage that one-sided taxes and charges do to aviation and to Europe's reputation as a place to do business," Franz noted.