Lufthansa reduced its losses by increasing the number of passengers and reducing its costs. In the second quarter, adjusted operating income was minus 952 million euros, the aviation group said. The loss was much lower than in the same quarter a year earlier, when corona containment caused a deficit of 1.7 billion euros, and slightly less than analysts expected.
Thanks to strong inbound bookings and cost reductions, also thanks to short-time working and downsizing, for the first time since the start of the crisis, more cash has flowed into Lufthansa than it is exits, to 340 million euros. “The fact that more than 30,000 colleagues have left us so far hurts us all, but is inevitable for the lasting rescue of the more than 100,000 remaining jobs,” said CEO Carsten Spohr.
The corona crisis has hit air traffic hard. It has only been since May that more passenger planes have started taking off again with the relaxation of travel restrictions. Particularly painful is the ban on entry into the United States for EU citizens.
The freight division Lufthansa Cargo, Lufthansa Technik with its maintenance activity, which is restarting, and the catering subsidiary LSG, put on sale, have made a positive contribution with its activity outside Europe. The main improvements in profits came from airlines, which however clearly remain in the red. Lufthansa and the subsidiary airlines Eurowings, Swiss, Brussels and Austrian Airlines carried seven million passengers from April to June – more than the same period last year, when air traffic was largely on the ground and 1.7 million boarded passengers, but only 18 percent of pre-crisis 2019 level.
Lufthansa receives additional government aid of 1.5 billion euros
Lufthansa’s turnover rose 70% to 3.2 billion euros, but remained far from the normal level where Lufthansa had soared nearly ten billion euros in turnover. At the same time, Lufthansa is progressing faster than expected in its cost reductions: half of the target of 3.5 billion euros in savings by 2024 has already been implemented.
As the airline announced, an additional € 1.5 billion in state aid from the silent participation of the federal government was used in the second quarter. Lufthansa now uses four billion of the nine billion euros offered by four countries. Lufthansa is also preparing a capital increase to replace state aid, as CFO Remco Steenbergen said. At the end of the quarter, the company had cash and cash equivalents of 11.1 billion euros.
For the full year, CEO Spohr continues to expect Lufthansa to be able to reduce its adjusted loss before interest and taxes compared to the previous year. In the third quarter, the range of flights is expected to reach around 50% of the pre-crisis level. For the year as a whole, the capacity offered is only expected to reach around 40% of the pre-Corona 2019 year.