Lufthansa slumps to record annual loss

Monday, 04 Mar, 2021 0

Europe’s largest airline group Lufthansa says it will struggle to turn an operational profit on flights this year as it posted a record €6.7 billion annual loss.

Its near-term fortunes will be dependent on a successful vaccine rollout in the markets it flies to, the airline said.

Last year was ‘the most challenging in the history of our company.’

It posted €1.1 billion fourth-quarter net loss as revenue dropped 71%.

It expects to have only 40-50% of pre-pamdemic capacity this year and is mulling retiring more older aircraft.

Still, following a multi-billion euro bailout, it has enough cash ‘to withstand a market environment that remains difficult,’ Chief Financial Officer Remco Steenbergen said.

Chief Executive Officer Carsten Spohr said there could still be a rebound this summer but that is heavily dependent on vaccine rollout progress and a workable ‘vaccine passport’ scheme.

"We expect demand to pick up again as soon as restrictive travel limits are reduced by a further roll-out of tests and vaccines. Internationally recognized, digital vaccination and test certificates must take the place of travel bans and quarantine," Spohr said in a statement.

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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