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.
