Lufthansa loses €1,5bn in second quarter

German airline Lufthansa was deep in the red in the second quarter, posting a net loss of €1.5 bn, the carrier disclosed on Thursday. The operative loss was much higher at €1.7bn, as the effects of the coronavirus pandemic took hold, dpa reported.

It was only thanks to record results from its cargo subsidiary Lufthansa Cargo, that things were not even worse, the carrier announced. Lufthansa Cargo benefited from the sharp rise in demand for cargo flights.

The group plans to cut costs by 15% by 2023, reduce the fleet by at least 100 aircraft and cut 22,000 full-time positions. By the end of June, Lufthansa had already reduced the number of its employees by almost 8,300 compared to the previous year. It follows a sharp loss in the first quarter, when Lufthansa posted a net loss of €2bn.

The effects of the pandemic hit in March, shutting down the airline's lucrative long-haul routes as well as flights to European destinations.

From mid-March, the airline, which includes a string of subsidiaries alongside the flagship brand, shut down virtually all its flights carrying passengers, although cargo flights continued.

The German state now owns a stake of 20%. Most of Lufthansa's 760 aircraft remain grounded, and the airline is predicting it will cut its fleet by 100 aircraft.

More on this subject: Coronavirus

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