The collapse in demand for air journey in the course of the Covid-19 outbreak led to an 80 per cent drop in income at Lufthansa Group within the second quarter.
The aviation big took simply €1.9 billion over the previous three months, down from €9.6 billion in the identical interval final yr.
A lot of the income, some €1.5 billion, was generated by Lufthansa Cargo and Lufthansa Technik.
Lufthansa Group adjusted EBIT for the quarter was – €1.7 billion, down from €754 million final yr, regardless of in depth price reductions.
Working bills had been lowered by 59 per cent, primarily via the introduction of short-time working for giant elements of the workforce and the cancellation of non-essential expenditure.
The logistics division benefited from secure demand.
Within the second quarter, Lufthansa airways carried 1.7 million passengers, 96 per cent fewer than within the earlier yr.
Carsten Spohr, chief govt of Deutsche Lufthansa, stated: “We’re experiencing a caesura in international air visitors.
“We don’t count on demand to return to pre-crisis ranges earlier than 2024.
“Particularly for long-haul routes there will likely be no fast restoration.”
He added: “We had been in a position to counteract the results of the coronavirus pandemic within the first half of the yr with strict price administration in addition to with the revenues from Lufthansa Technik and Lufthansa Cargo.
“And we’re benefitting from the primary indicators of restoration on vacationer routes, particularly with our leisure journey gives of the Eurowings and Edelweiss manufacturers.
“Nonetheless, we is not going to be spared a far-reaching restructuring of our enterprise.”
Within the first half of 2020, group income fell by 52 per cent to €8.three billion, whereas the group reported complete losses of €2.9 billion.
Over the identical interval, the Lufthansa Group of airways carried a complete of 23.5 million passengers, two thirds fewer than in the identical interval final yr.
Capability decreased by 61 per cent.
Following the losses, the airline has unveiled a restructuring programme.
The work contains the lack of 22,000 full-time jobs throughout the Lufthansa Group, whereas 100 plane will even completely go away the fleet.
Nonetheless, the airline hopes capability provided in 2024 will correspond to that of 2019.
To this finish, Lufthansa hopes productiveness will likely be elevated by 15 per cent by 2023, amongst different issues by lowering the variety of the air operators’ certificates to a most of ten.
The dimensions of the chief and administration boards will even be lowered, whereas the variety of executives within the group will likely be lowered by 20 per cent.
“We’re satisfied that the complete aviation business should adapt to a brand new regular,” stated Spohr.
“The pandemic gives our business a novel alternative to recalibrate: to query the established order and, as an alternative of striving for development at any worth, to create worth in a sustainable and accountable method.”