Lufthansa, a German airline, will produce positive cash flow in the summer. However, it shouldn’t be possible to completely unwind a Covid-19 rescue plan within a year, Carsten Spohr, CEO, told Reuters Tuesday.
Most Lufthansa flights were grounded by the coronavirus pandemic in early 2020, plunging the airline into crisis and leading the German government to acquire a 20 percent stake as part of a $7.1 billion rescue package.
Germany’s Economic Stabilization Fund said that it will begin selling its shares in the next weeks, with the aim of disposing of the entire stake by 2023.
Spohr stated that “we are relieved” that the government had entered into the exit process. He also said that he expects the stabilisation and rescue of the airline to be completed by next summer.
Spohr stated that Lufthansa is able to generate cash even if passenger numbers are at 50% of pre-pandemic levels. This level was reached in the summer holidays season. Lufthansa’s total capacity can be reached at 40 percent for the entire year.
Lufthansa’s cargo operation was performing strongly and is expected to generate profits of a $1.2 billion this year, he added. This compares to last year’s $757 million air cargo profit.
Douglas Busvine wrote the article. Mark Potter edits
Ilona Wissenbach, Reuters writer. This article has been legally licensed by the Industry Dive publisher network. Please direct all licensing questions to [email protected]
Publiated at Tue 31 August 2021, 10:34:01 +0000