Cuts Attributed To Spread Of Covid-19 Virus

Due to the exceptional circumstances caused by the spread of Covid-19 and the resulting drastic decline in bookings as well as numerous flight cancellations, Lufthansa Group has decided to reduce the flight capacity on offer even more than previously planned. Depending on the further development of demand, capacity is to be reduced by up to 50 per cent in the coming weeks. These capacity adjustments apply to all passenger airlines in the Lufthansa Group.

In addition, the extent to which the entire Airbus A380 fleet (14 aircraft) can be temporarily taken out of service in Frankfurt and Munich is currently being examined.

This measure is designed to reduce the financial consequences of the slump in demand. It complements the planned savings actions in the area of personnel, in material costs and project budgets, and other liquidity measures. In addition to an immediate hiring freeze, Lufthansa Group has already offered its employees the use of voluntary individual personnel measures in recent weeks. These include the granting of unpaid leave and bringing forward annual leave. The company is in talks with its operating partners and trade unions in order to avoid dismissals - among other measures - by means various part-time models, including probationary periods.

It is not yet possible to estimate the burden on earnings to be expected from current developments. The Group will publish key financial figures at the annual press conference on March 19, 2020.

(Image provided with Lufthansa news release)

FMI: www.lufthansagroup.com