Lufthansa unveils new strategy, Eurowings turnaround

Lufthansa revealed new developments in its strategy, including turnaround plans for Eurowings, at its capital markets day Monday. The carrier said that Eurowings will focus on short-haul services in the future as its long-haul activities will be transferred to its Network Airlines segment, and unit costs at Eurowings should be cut by 15% by 2022. Lufthansa also changed its dividend policy, which is expected lead to higher payouts for shareholders. The carrier said that in the future, 20% to 40% of its net income should be regularly distributed to shareholders. Lufthansa specified that the new payout is adjusted for one-time gains and losses. In the medium term, the company aims to raise its free cash flow to more than US$1.14b a year. Lufthansa said that Brussels Airlines will also go through a turnaround in Q3 2019. <br/>