Lufthansa Warns Of Additional Restructuring Prices In Fourth Quarter

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BERLIN: Lufthansa on Thursday mentioned it booked a web lack of 2 billion euros ($2.35 billion) within the third quarter as a result of pandemic-related stoop in travelling and mentioned additional restructuring measures would weigh on fourth-quarter figures.

The quantity of the anticipated restructuring prices will rely on the negotiations with commerce unions, the group mentioned.

The airline, which has already introduced plans to chop 20% of its management positions and 1,000 administrative jobs, goals to slash 22,000 full-time jobs.

Lufthansa mentioned the typical month-to-month working money drain was at 200 million euros within the third quarter. Because the airline expects even fewer passengers within the colder months, it mentioned that quantity will develop within the October-December interval however not exceed 350 million euros.

“We wish to return to a constructive working money move in the midst of the approaching yr,” mentioned Chief Govt Carsten Spohr in a press release. “In an effort to obtain this, we’re advancing restructuring applications all through the group.”

Working bills had been lower by 43% within the third quarter in comparison with the earlier yr, helped by considerably decrease gas prices and costs. Gross sales fell to 2.7 billion euros from 10.1 billion euros.

The German airline, which secured a 9 billion euro state bailout in June, mentioned it had liquidity of 10.1 billion euros accessible.

($1 = 0.8520 euros)

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