Thursday, April 15, 2021

Lufthansa to shrink fleet after seeing record loss | News

Must read


Lufthansa Group has reported a net loss of €6.7 billion for financial 2020 and the Covid-19 pandemic shattered European aviation.

Revenue for the year at the airline giant fell 63 per cent, to €13.6 billion, as net debt ballooned 43 per cent to €9.9 billion.

Carsten Spohr, chief executive of Lufthansa, said: “The past year was the most challenging in the history of our company – for our customers, our employees and our shareholders.

“Travel restrictions and quarantine have led to a unique slump in demand for air travel.

“Now internationally recognised, digital vaccination and test certificates must replace travel bans and quarantine so people can once again visit family and friends, meet business partners or learn about other countries and cultures.”

The number of employees at Lufthansa fell by around 28,000 last year, while. in Germany, a further 10,000 jobs will be reduced.

The group fleet will be reduced to 650 aircraft in 2023, down from around 765 planes today.

Spohr said the Airbus A380 was now unlikely to return, while several other long-haul aircraft types would be phased out.

By the middle of the decade, the group expects the capacity level to return to 90 per cent of those seen in 2019.

In addition, Lufthansa said it was examining the disposal of subsidiaries that offer only minor synergies with the core business.

Spohr added: “The unique crisis is accelerating the transformation process in our company – this will be a year of redimensioning and modernisation for us.

“The focus will remain on sustainability.

“We are examining whether all aircraft older than 25 years will remain on the ground permanently.

“From the summer onwards, we expect demand to pick up again as soon as restrictive travel limits are reduced by a further roll-out of tests and vaccines.

“We are prepared to offer up to 70 per cent of our pre-crisis capacity again in the short term as demand increases.”



Source link

- Advertisement -spot_img

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article