Consequences of Corona pandemic have a considerable impact on Lufthansa result

  • Adjusted EBIT declines to minus one.seven billion euros in the second quarter despite substantial expense reductions
  • Comprehensive “ReNew” restructuring programme to make sure international competitiveness immediately after the crisis
  • Lufthansa Cargo with potent second quarter
  • Quantity of workers already diminished by 8,300 – redundancies no lengthier dominated out in Germany as properly
  • Normalization of demand from customers to pre-crisis stage expected for 2024 at the earliest

The collapse in demand from customers for air vacation because of to the Corona pandemic led to an eighty p.c fall in earnings for the Lufthansa Group in the second quarter to one.nine billion euros (earlier yr: nine.6 billion euros). Most of the earnings (one.five billion euros) was generated by Lufthansa Cargo and Lufthansa Technik.

The Lufthansa Group Adjusted EBIT in the quarter beneath evaluate amounted to minus one.seven billion euros (earlier yr: 754 million euros), irrespective of in depth expense reductions. Functioning costs had been diminished by 59 p.c, largely through the introduction of quick-time doing the job for big elements of the workforce and the cancellation of non-vital expenses. On the other hand, these actions had been only partly in a position to compensate for the decline in profits. The consolidated web earnings of Lufthansa Group for the months April to June amounted to minus one.five billion euros (earlier yr: 226 million euros).

The logistics division benefited from secure demand from customers. The loss of cargo capability in passenger aircraft (“bellies”) led to a substantial increase in yields. Lufthansa Cargo’s Adjusted EBIT consequently rose to 299 million euros (earlier yr: minus nine million euros).

1st fifty percent of 2020 
In the complete to start with fifty percent of 2020, Lufthansa Group earnings fell by fifty two p.c to 8.3 billion euros (earlier yr: 17.four billion euros). Adjusted EBIT amounted to minus 2.nine billion euros (earlier yr: 418 million euros) and EBIT to minus 3.five billion euros (earlier yr: 417 million euros). The change in between the two figures is generally because of to depreciation on aircraft and aircraft utilization rights amounting to 300 million euros, goodwill impairments totaling 157 million euros and the impairment of joint undertaking holdings in the MRO segment totaling 62 million euros.

In addition, the adverse marketplace benefit advancement of gasoline expense hedging contracts experienced a adverse affect of 782 million euros on the fiscal end result in the to start with six months of the yr. As opposed with the to start with quarter, this outcome diminished by 205 million euros. The Lufthansa Group web end result for the to start with fifty percent of the yr consequently amounted to minus 3.6 billion euros (earlier yr: minus 116 million euros).

Targeted traffic advancement in the second quarter of 2020
In the second quarter of 2020, the Lufthansa Group airways carried one.seven million passengers, 96 p.c much less than in the earlier yr. Ability fell by ninety five p.c. The seat load component was 56 p.c, 27 share factors down below the earlier year’s determine. Freight capability offered