Lufthansa suffers €1.26 billion loss, expects more
Deutsche Lufthansa (LHAB) (LHA), the largest German airline, reported an operating loss of €1.26 billion in the third quarter of 2020. However, after the airline expanded its flight schedule in July and August 2020 and significantly reduced costs, the losses became slightly lower in comparison to the previous quarter loss of €1.5 billion.
Lufthansa Group announced that despite the reported loss in the third quarter, the air carrier had liquidity of €10.1 billion at its disposal in September 2020. The company was saved from bankruptcy after the government of Germany appointed a €9 billion worth financial injection in June 2020. A state-bailout deal assured the government a 20% stake in the airline in exchange.
The brought-to-its-knees air carrier forecasted that the demand for air travel would remain low in the further months because of an „evolution of the COVID-19 pandemic and related travel restrictions“. However, Lufthansa Group stated that it would be able to withstand further burdens from the pandemic.
Deutsche Lufthansa (LHAB) (LHA) also considered operating as little as just 25% capacity in the fourth quarter of 2020, compared with the same quarter. In order to cut costs even stronger, the German air carrier would reduce its fleet by 150 jets by 2025.
According to Planespotters.com data, the airline has a total of 266 aircraft in the fleet. The company said that the fleet reduction would result in at least 22,000 job redundancies.
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