William Malcolm

Lufthansa Reports Record Losses In 2020

German airline Lufthansa ended its operations last year due to the coronation crisis with a record loss of 6.7 billion euros. In 2019, they had a profit of 1.2 billion euros. The head of the company, Carsten Spohr, expects a lower operating loss for this year. According to him, the offer of flights this year will reach 40 to 50 percent of the level from 2019. The previous forecast counted on 60 percent. The company will not pay a dividend again.

In the last quarter, the largest European airlines reported a lower net loss than expected, namely, 1.14 billion euros. Analysts expected the company to lose up to 1.24 billion euros from October to December.

Like other airlines, Lufthansa is facing the negative effects of a pandemic and has had to negotiate state aid of € 9 billion to avoid the threat of bankruptcy. Spohr assumes that the company will not exhaust it in its entirety this year, with airlines losing an average of 300 million euros a month in the first quarter.

“We expect stronger demand from the summer as soon as travel restrictions are lifted through the expansion of tests and vaccinations,” said Spohr. Lufthansa expects a short-term increase in supply to seventy percent of pre-coronavirus levels.

According to Reuters, two dozen seats from Frankfurt am Main and thirteen destinations from Munich have been added to Lufthansa’s summer flight schedule. It includes the Caribbean, the Canary Islands, and Greece, among others.