Lufthansa warns of further fleet and job cuts as the outlook worsens

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BERLIN: The deterioration in air travel forecasts prompted Lufthansa to further reduce its fleet and workforce on Monday, as the coronavirus crisis forced it to set aside 1.1 billion euros ($ 1.3 billion) in provisions for the depreciation of its aircraft.

The German airline, which received a government rescue package of 9 billion euros in June, said expectations for international air travel activity had deteriorated in recent weeks, along with declining reservation numbers as the summer holiday travel period expired.

Lufthansa said it now expects work capacity to be in the range of 20-30% in the fourth quarter, down from a previous forecast of 50%, as signs of a European recovery receded at the start of the summer due to travel restrictions and quarantine measures.

As a result, Lufthansa intends to reduce 150 aircraft from its fleet, which is 50 more aircraft than it had previously planned, to about 650 aircraft, adding that this means that it will need to cut more jobs than the previously announced figure, which is 22,000 full-time jobs. Whole.

Lufthansa shares were down 9.6% by 1417 GMT, compared with the German DAX index dropping 4.1%.

(Reuters)





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