Although people were able to fly more in the summer, Lufthansa was also deeply in the red in the third quarter. The management is nevertheless confident.
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The slump in air traffic in the Corona crisis also caused Lufthansa to lose billions in the summer. From July to September, the airline reported a minus of almost 1.3 billion euros before taxes on Tuesday – despite the expansion of the flight offer in July and August.
In the same period of the previous year Lufthansa had recorded a profit of almost 1.3 billion euros before taxes. This year, however, the worldwide travel restrictions as a result of the corona pandemic led to a massive drop in passenger numbers. According to the company, this led to a total pre-tax loss of around 4.2 billion euros in the first nine months of this year.
Thanks to the state aid received, the management was confident that the Lufthansa Group can withstand further stresses from the corona pandemic. At the end of September, the group still had cash and cash equivalents of 10.1 billion euros. At the same time, Lufthansa warned of difficult winter months in which demand would remain low due to the pandemic.
The current plan provides for only a quarter of the flights from the same period last year in the current quarter. There are hardly any intercontinental flights at the moment.
Lufthansa wants to cut 27,000 jobs worldwide
Lufthansa does not expect the cash flow to develop positively until the end of next year. A significant reduction in the fleet and the workforce has been announced. Most recently, around 27,000 of the 128,000 jobs left worldwide should be cut. However, there have so far only been fragmentary agreements with the trade unions on this, especially at home in Germany.
“Lufthansa is still in a fundamentally precarious situation,” commented market expert Andreas Lipkow from Comdirect Bank. It is also an enormous feat for the airline to adapt the business model, which is designed for mass transport with low margins, to the circumstances. “The liquidity situation gives the group a good competitive advantage.”