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Lufthansa Reduces Quarterly Loss, Cash Flow Positive

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Lufthansa managed to reduce its losses in the second quarter. In addition, the German aviation group recorded a positive cash flow for the first time since the start of the crisis, which means that more money came in than went out. This was mainly due to cost savings.

 

The company, which also includes operating companies such as Eurowings, Brussels Airlines and Austrian Airlines, saw its operating loss fall to EUR 952 million. That was 43 percent less than a year earlier. Revenues amounted to 3.2 billion euros.

Lufthansa unveiled plans in June to return to profitability with fewer aircraft and fewer personnel compared to the pre-crisis period. As a result, the group expects a further recovery in tourism in the second half of the year. The German group is also counting on better times in terms of business travel.

Lufthansa’s operating companies transported 7 million passengers in the second quarter of the year. That is less than a fifth of the number of travellers processed before the crisis. However, in the course of the quarter, the situation did improve somewhat. Capacity increased to 40 percent of normal production.

Lufthansa says it has already achieved half of the targeted cost savings of 3.5 billion euros by 2024. This puts the group ahead of its own schedule, especially because voluntary severance packages in Germany and Switzerland turned out to be more successful than expected.

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