Lufthansa Group reports EUR2.1 billion net loss

Lufthansa Group has reported a net loss of EUR2.1 billion for the first quarter of 2020. The group’s adjusted EBIT for Q1 stands at EUR-1.2 billion. The coronavirus has “impacted our quarterly results to an unprecedented level” says Chairman of the Executive Board, Carsten Spohr.

Austrian Airlines Airbus A320 registered OE-LBL sporting an intriguing nose. Photo by Max Sutter | AeroNewsX

The Lufthansa Group has also unveiled plans to increase capacity over the coming month. By September, it expects to operate up to 40% of its original schedule. Its May schedule operated at just 3% of initial planning which was extremely low.

However, the effects of the coronavirus are long term. The group expects 300 grounded planes in 2021, 200 in 2022 and 100 in 2023. Globally, travel demand remains at record low levels and airlines are struggling to make ends meet with passenger services at the moment. Lufthansa's supervisory board recently approved the stabilization package offered by the Economic Stabilisation Fund (WSF) of the Federal Republic of Germany, ensuring the airline's long-term sustainability.

SWISS has reported an operating loss of EUR77.9 million for the first quarter of 2020. The airline's revenue declined by approximately 20% compared to the same period last year. However, its load factor remained at surprisingly reasonable levels (especially considering the crisis) at 73.3%.

Brussels Airlines has reported a EUR93 million loss for the first quarter of 2020. This is almost double the figure recorded during the same period last year. Meanwhile, talks for state aid are ongoing for Brussels Airlines. The Belgian government has already expressed interest in helping the airline out. However, the government wants the money to go solely into helping Brussels Airlines, rather than the Lufthansa Group as a whole.

Meanwhile, Austrian Airlines has recorded a 24% decline in revenue, totalling EUR287 million. Adjusted EBIT declined by 37% compared to the same period last year to EUR136 million. The carrier's fleet has been grounded since 19 March as a result of the coronavirus. It expects to resume operations on 15 June with 25-50% of its initially scheduled flight offering.