Lufthansa Group loses EUR 2.1 billion in Q1

The Lufthansa Group reported a loss of EUR 2.1 billion in the first quarter of 2020 due to the coronavirus pandemic.

“Travel restrictions due to the global spread of coronavirus caused significant damage to Lufthansa Group’s profit in the first quarter of 2020. The group’s profit was minus 2.1 billion euros (after taxes and depreciation – ed.),” The air group’s press release said. published on Wednesday.

According to the air group, in the first quarter, sales fell by 18% – to 6.4 billion euros, last year this figure was 7.8 billion euros. At the same time, the company notes that the reduction in costs offset the decrease in turnover only partially.

“The adjusted EBIT (profit before interest and taxes – ed.) In the first quarter amounted to minus 1.2 billion euros,” the statement said.

It is also reported that the leadership of the air group intends to carry out restructuring in all areas of the Lufthansa Group to be able to quickly repay loans.

The German authorities last week approved a package of support measures for Lufthansa airline for € 9 billion, with the proviso that the state will receive a 20% stake in the company’s capital, which will be done through an additional issue of shares of Deutsche Lufthansa AG.

Later, the board of Lufthansa agreed to the terms of the European Commission, the implementation of which is necessary to receive an air-concern package of financial assistance from the German government. It is noted that the number of conditions put forward by the EC was reduced compared to the original. According to the terms, Lufthansa is obliged to concede up to 24 slots (take-off and landing rights) to accommodate up to four aircraft at the airports of Frankfurt and Munich.

Author: Sam Smith
Graduated from University of Oxford. Previously, he worked in various diferent news media. Currently, it is a columnist of the world news section in the Free News editors.
Function: Editor
E-mail: olegceban01@gmail.com