Covid-19: Lufthansa expects "difficult winter" after loss of 2 billion
Airplanes of the company Lufthansa, in the new Berlin airport 'Willy Brandt', in Schoenefeld, October 29, 2020. REUTERS / Hannibal Hanschke
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While it was already in difficulty and was saved from bankruptcy by the German state, the leading European air transport group Lufthansa said Thursday November 5 to expect a "difficult winter" because of the rebound of the Covid-19 pandemic ... and after the announcement of a net loss of 2 billion euros in the third quarter.
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Saved
in June by a Berlin rescue plan
, Lufthansa hopes to reach in 2021 an offer representing 50% of the pre-pandemic level, compared to 25% expected at the end of the year ... subject to the health situation.
This level is necessary to find positive cash flow, explains the group.
After limiting the bleeding of cash to 200 million euros per month, the group will see this figure rise at the end of the year to 350 million, due to the second wave of the coronavirus pandemic, which is hitting the continent hard European.
On Thursday, November 5, the company posted a net loss of two billion euros in the third quarter due to restrictions on travel.
Short summer respite
During the summer, the short respite offered by the holidays,
the slowing of the pandemic in Europe
and the lifting of restrictions, between June and August, driven by tourist travel, faded in the face of the resurgence of the disease and the news travel restrictions in Europe.
With a rebound in traffic weaker than expected, Lufthansa announced at the end of September to ground 125 additional planes which flew this summer.
Initially, the group expected to reach 50% of capacity this winter.
"
We are at the start of a hard and difficult winter for our branch,
" commented the boss, Carsten Spohr, in a statement, deeming "
necessary
" the restructuring measures undertaken.
Among these, up to 30,000
jobs are threatened within the company
, which is also separating some 150 planes.
The airline had notably announced a 20% reduction in management positions.
Lufthansa says it wants to find agreements to "
limit the number of dry layoffs
".
This in particular thanks to more part-time work and therefore wage cuts.
These negotiations are proceeding slowly.
Berlin rescue plan
Lufthansa benefited in June from a massive bailout package of 9 billion euros from the German government.
This then entered its capital up to 25%.
Over the first nine months of the year, the net loss reached 5.6 billion euros for a drop in turnover of 60% to 11 billion.
A sharp drop in the number of passengers, of 71%, is also to be deplored.
With an operating profit of 446 million euros, the cargo branch is the only one in the green for the first nine months of the year.
Because the result of Lufthansa Technik, a maintenance provider that the group could sell in part, has also fallen into the red (-208 million).
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To read also
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With AFP
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