FRANKFURT (Reuters) – Lufthansa has vowed to step-up, up and restructuring measures, following the publication of a first-quarter net loss of 2.1 billion euros ($2.35 billion), the day after the agreement on a state bail-out, in the midst of the effects of the corona-virus-pandemic
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
The German airline’s commitment to slash costs as it braces for a significant decline in 2020 with the result.
“In view of the very slow recovery of the demand, we now have measures of a far-reaching restructuring,” said Chief Executive Carsten Spohr, adding the group was in talks with labour representatives about the cuts.
The loss of the first quarter, which was being driven 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.
A slump in fuel-hedging contracts, the 950-million-euro burden on the bottom line.
Lufthansa, which is grounded already, almost all of the planes at the peak of the pandemic is confirmed, reported a loss before interest and taxes of 1.2 billion euros in the first three months of the year, for the first time-at the end of April.
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.
The Lufthansa group, including Swiss, Austrian Airlines and Brussels Airlines, suffered a 98% slump in April, as the number of passengers from the previous month, up to 241,000.
But it laid out plans to reach out to the on Thursday to increase the offered capacity in September, to 40% of what it had been planned before the crisis.
Analysts expect the national carrier to be removed from Germany’s benchmark blue-chip index, the DAX, or the Lufthansa was an essential part, since the strength of the Foundation in the year 1988.
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Reporting by Ludwig Burger; editing by Thomas Seythal, Maria Sheahan and Carmel Crimmins