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(MICHAELA REHLE/REUTERS)

BREAKINGVIEWS

Lufthansa’s cost-cutting gaining altitude too fast

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

Lufthansa , Europe’s largest airline by passengers, is in the middle of a radical restructuring program. Employees and customers are already feeling the pain. It’s now the shareholders’ turn. They won’t get a dividend after operating profit nosedived by 36 per cent last year. This will save Lufthansa €160-million ($217-million) to €200-million. Investors are not amused and sent the carrier’s share price down almost 5 per cent.