Brussels Airlines prepares 'reboot' restructuring program
Brussels Airlines aims to reduce costs by 8% to 12% to achieve an operating margin (EBIT) of 8% in 2022. CE Christina Foester said that's the level of profitability the company needs to finance its own investments. “We need a margin of 8% to self-finance our current and planned investments in fleet renewal, network expansion, and people development” according to an internal communication from management to staff Thursday. Although the memo does not mention any concrete measures, such as possible job losses, it points out that the cost savings may be even higher depending the inflation or falling yields. Also, rising fuel prices may require additional measures. Foester's 8% EBIT margin target would bring Brussels Airlines in line with the Lufthansa target—of between 7% and 9% in 2019—for its network airlines unit. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-08-30/star/brussels-airlines-prepares-reboot-restructuring-program
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Brussels Airlines prepares 'reboot' restructuring program
Brussels Airlines aims to reduce costs by 8% to 12% to achieve an operating margin (EBIT) of 8% in 2022. CE Christina Foester said that's the level of profitability the company needs to finance its own investments. “We need a margin of 8% to self-finance our current and planned investments in fleet renewal, network expansion, and people development” according to an internal communication from management to staff Thursday. Although the memo does not mention any concrete measures, such as possible job losses, it points out that the cost savings may be even higher depending the inflation or falling yields. Also, rising fuel prices may require additional measures. Foester's 8% EBIT margin target would bring Brussels Airlines in line with the Lufthansa target—of between 7% and 9% in 2019—for its network airlines unit. <br/>
