As expected, Lufthansa ended the second quarter, which was particularly hard hit by the Corona crisis, with a loss worth billions. Despite extensive cost reductions, the group's net loss amounts to 1.5 billion euros, said Lufthansa. With only four percent of passengers compared to the same period in the previous year, sales fell by 80 percent to 1.9 billion euros. The company owes the fact that things did not get any worse thanks to record results from its cargo subsidiary Lufthansa Cargo, which benefited from the sharp rise in demand for cargo flights.
Because of the loss of billions, Lufthansa no longer rules out redundancies in Germany. The plan to avoid this is no longer realistic due to developments in global air traffic and negotiations with the unions, the now partially nationalized company in Frankfurt said. Lufthansa wants to save 22,000 jobs. For example, the costs are to be reduced by 15 percent by 2023. The fleet will also be reduced by at least 100 aircraft. By the end of June, Lufthansa had already reduced the number of its employees by almost 8,300 compared to the previous year.
CEO Christian Spohr said he does not expect the demand for air travel before 2024 to reach the level it was before the Corona crisis. "We are experiencing a turning point in global air traffic." There will be no quick recovery, especially on the long-haul routes. While more and more flights have taken off in Europe since the end of the travel warning in mid-June, the long-haul route that is important for Lufthansa, for example to the USA, is largely canceled due to the pandemic. There are also setbacks due to renewed outbreaks in regions such as most recently in Northern Spain.
State has saved Lufthansa from bankruptcy
The corporation had to be saved from bankruptcy in the Corona crisis with nine billion euros in state financial aid. Spohr had warned in May that the money would soon run out. Without public funding, the company still had 2.8 billion euros at the end of June, including the rescue package it was now just under 12 billion euros.
The company wants to cope with the crisis with massive cost reductions and to quickly reduce government debt. The savings program primarily includes a reduction in personnel, which is faster at the foreign subsidiaries Austrian and Brussels Airlines and Swiss than in Germany. The number of employees already fell by 8,300 to 129,400.
In Germany, negotiations with the unions on rules for a socially responsible job cuts have been going on for months.