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Sunday, September 19, 2021

Lufthansa with record loss in Corona year – recovery is dragging on

CEO Carsten Spohr had expected more recovery in 2021, but is now looking more pessimistically into the future.

The collapse of business in the corona crisis brought about a record loss for Lufthansa in 2020. The bottom line was a minus of 6.7 billion euros after a profit of 1.2 billion a year earlier, as the state-backed company announced in Frankfurt on Thursday.

More pessimistic again

After the difficult start into the new year, CEO Carsten Spohr will also be a bit more pessimistic for 2021. The flight offer is likely to reach only 40 to 50 percent of the level from the pre-crisis year 2019. So far he had thought up to 60 percent possible.

In the past year the turnover of the MDax group collapsed by 63 percent to 13.6 billion euros. Once again, there will be no dividend for the shareholders. For 2021, Spohr assumes that the loss will be lower and that Lufthansa will not have to make full use of the state aid of a total of 9 billion euros despite the continuing difficult situation .

“From the summer we expect a stronger demand as soon as the restrictive travel restrictions are reduced due to the further spread of tests and vaccines,” he said. Lufthansa could increase its flight offer in the short term to up to 70 percent of the pre-crisis level.

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