The German Lufthansa recorded a net loss of EUR 1.5 billion in the second quarter. Severe austerity measures could not compensate for the sharp fall in turnover. Due to the coronavirus, the airline had to ground almost all its passenger aircraft.
Lufthansa already recorded a loss of EUR 2.1 billion in the first quarter. On Thursday, Europe’s largest airline said that it has already cut 8300 jobs, a third of the total number of jobs that disappear. In addition, the fleet will be reduced by 100 aircraft and about 1000 jobs in management will disappear.
Turnover fell by 80% to 1.9 billion euros. A year earlier the turnover was 9.6 billion euros.
“We’re going through a revival of global air traffic,” said CEO Carsten Spohr. “But we do not expect demand to return to pre-crisis levels by 2024. Especially for long-distance routes there will be no rapid recovery.”
Spohr also said that avoiding redundancies is no longer realistic given the reduced demand and the slow progress of labour negotiations with the trade unions.
Lufthansa currently offers about 40% of its usual short-range capacity and 20% of long-range routes. These figures will reach around 55% and 50% respectively in the fourth quarter. The airline said that a ‘clearly negative’ profit is still expected in the second half of the year.
The German government came to Lufthansa’s aid at the end of June by taking a 20% stake for EUR 6 billion and guaranteeing a loan of EUR 3 billion.