Travel & Leisure

Consequences of Corona pandemic have a considerable impact on Lufthansa result

  • Modified EBIT declines to minus one.seven billion euros in the 2nd quarter despite significant value reductions
  • Thorough “ReNew” restructuring programme to make sure worldwide competitiveness right after the disaster
  • Lufthansa Cargo with potent 2nd quarter
  • Variety of workforce already lessened by eight,300 – redundancies no longer dominated out in Germany as nicely
  • Normalization of desire to pre-disaster degree predicted for 2024 at the earliest

The collapse in desire for air journey because of to the Corona pandemic led to an eighty % drop in revenue for the Lufthansa Group in the 2nd quarter to one.9 billion euros (preceding 12 months: 9.six billion euros). Most of the revenue (one.five billion euros) was created by Lufthansa Cargo and Lufthansa Technik.

The Lufthansa Group Modified EBIT in the quarter less than critique amounted to minus one.seven billion euros (preceding 12 months: 754 million euros), inspite of in depth value reductions. Working costs were lessened by 59 %, principally by means of the introduction of short-time functioning for massive areas of the workforce and the cancellation of non-essential expenditures. Nevertheless, these actions were only partially equipped to compensate for the decline in product sales. The consolidated internet earnings of Lufthansa Group for the months April to June amounted to minus one.five billion euros (preceding 12 months: 226 million euros).

The logistics division benefited from stable desire. The decline of cargo ability in passenger plane (“bellies”) led to a significant improve in yields. Lufthansa Cargo’s Modified EBIT as a result rose to 299 million euros (preceding 12 months: minus 9 million euros).

First fifty percent of 2020 
In the total initially fifty percent of 2020, Lufthansa Group revenue fell by 52 % to eight.3 billion euros (preceding 12 months: 17.four billion euros). Modified EBIT amounted to minus two.9 billion euros (preceding 12 months: 418 million euros) and EBIT to minus three.five billion euros (preceding 12 months: 417 million euros). The variation amongst the two figures is primarily because of to depreciation on plane and plane use legal rights amounting to 300 million euros, goodwill impairments totaling 157 million euros and the impairment of joint enterprise holdings in the MRO section totaling sixty two million euros.

In addition, the destructive industry value advancement of gasoline value hedging contracts had a destructive affect of 782 million euros on the fiscal end result in the initially six months of the 12 months. Compared with the initially quarter, this impact lowered by 205 million euros. The Lufthansa Group internet end result for the initially fifty percent of the 12 months as a result amounted to minus three.six billion euros (preceding 12 months: minus 116 million euros).

Traffic advancement in the 2nd quarter of 2020
In the 2nd quarter of 2020, the Lufthansa Group airways carried one.seven million passengers, 96 % fewer than in the preceding 12 months. Capability fell by 95 %. The seat load issue was 56 %, 27 proportion points beneath the preceding year’s figure. Freight ability supplied fell by 54 % because of to a deficiency