FILE PHOTO: aircraft of the German airline “Lufthansa” Parking at the airport of Berlin-Schönefeld airport in Schönefeld, Germany, May 26, 2020. REUTERS/Fabrizio Bensch
FRANKFURT (Reuters) – German airline Lufthansa (LHAG.DE) recorded a net loss of 2.1 billion euros ($2.35 billion Euro) in the first quarter to write down the value of assets, such as the feline corona virus pandemic hits the travel industry.
The loss, which was compared to a net loss of 342 million euros in the prior-year period, it, depreciation and amortization, or a total amount of 266 million euros on its fleet, as well as write-downs to the book value of the catering company, LSG North America, of $ 100 million and a budget device, Eurowings, of 57 millions of Euro, the airline said on Wednesday.
Lufthansa, which are already grounded almost all of its planes at the height of the corona-virus-pandemic, confirmed a loss before interest and taxes of 1.2 billion euros in the first three months of the year, for the first time reported at the end of April.
The airline is bracing for a significant decline in the year 2020, earnings before interest and taxes, adjusted for special effects, of the 2 billion euros reported last year, say, was recovered, demand only gradually, and it was not able to be more precise in the midst of the uncertainty about the pandemic.
The group of non-executive board on Tuesday approved a 9-billion-euro ($10 billion) government rescue package, the force will, of cement, some of his coveted slots for the competitors.
According to the plan, the German government has a 20% stake in the airline, which could give rise to a 25% plus one share in the event of a takeover attempt, as well as two seats on its Supervisory Board.
Lufthansa will also be required, the transfer of the cover-up-to-24-take-off and landing slots at their hubs in Frankfurt and Munich.
Analysts expect the national carrier to be removed from Germany’s benchmark blue-chip index, the DAX .GDAXI Lufthansa was an essential part, since the strength of the Foundation in the year 1988. Stock exchange operator Deutsche Börse is expected to decide the relegation on Thursday.
($1 = 0.8925 number
Reporting by Ludwig Burger; editing by Thomas Seythal and Maria Sheahan