Lufthansa Group needs billions in financial aid

Lufthansa Group needs billions in financial aid

After Air France-KLM, the Lufthansa Group also needs billions in financial aid. Lufthansa Group indicates that there is currently no prospect of an improvement in the situation that would prevent them from meeting their financial obligations. Lufthansa Group is in discussion with various governments in the countries in which Lufthansa Group operates. In a trade report, Lufthansa Group states the following:

In view of the business outlook, existing billion-dollar trade payables and cancelled ticket repayments, as well as upcoming repayments of financial liabilities, Lufthansa Group expects liquidity to decrease significantly in the coming weeks. The Lufthansa Group does not expect to be able to cover the resulting capital requirements with further borrowings in the market. The Lufthansa group is therefore conducting intensive negotiations with the governments of its home countries on various financing instruments in order to secure the group’s solvency on a sustainable basis in the near future. The Executive Board is confident that the talks will lead to a successful conclusion.

1.2 billion EUR loss in first quarter

In the first quarter, the Lufthansa Group recorded a loss of 1.2 billion EUR. This represents a turnover of EUR 6.4 billion. In the first quarter, sales fell by “only” 18 percent. The figures will be significantly worse in April and the second quarter.

Entire fleet is on the ground

As a result of the corona crisis, almost the entire fleet of the Lufthansa Group is on the ground. The Lufthansa Group includes Lufthansa, SWISS, Eurowings, Brussels Airlines and Austrian Airlines. The first three of these still operate a limited number of flights. The last two no longer operate any flights at all. It has also recently been announced that the Lufthansa Group will be taking early retirement from a number of aircrafts, including a number of Airbus A380, Airbus A340 and Boeing 747 aircrafts.

(c) Photo: Lufthansa – Airbus A350

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