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Lufthansa Group reports preliminary results for the third quarter

Cost reductions decrease operating loss compared to previous quarter.

The corona crisis continued to have a considerable impact on Lufthansa Group's earnings development in the third quarter of 2020. However, due to an expansion of the flight schedule in the summer months of July and August and considerable cost reductions, losses were reduced compared to the second quarter. On a preliminary basis, Adjusted EBIT in the third quarter was -1,262 million euros (previous year: 1,297 million euros). After nine months, the operating loss was -4,161 million euros (previous year: 1,715 million euros).

The Adjusted free cash flow for the first nine months of 2020 amounted to -2,579 million euros (previous year: 685 million euros). In the third quarter, Adjusted free cash flow was -2,069 million euros (previous year: 416 million euros). Payments of EUR 2.0 billion for corona-related flight cancellations were partly offset in the third quarter by cash inflows from the expansion of flight activities in July and August. The Group also benefited from strict working capital management and the postponement of tax payments. Net debt at the end of the third quarter was 8,930 million euros (December 31, 2019: 6,662 million euros).

At the end of September, the Group had liquidity of 10.1 billion euros at its disposal. This figure includes undrawn funds from the 9 billion euros stabilization packages from Germany, Switzerland, Austria and Belgium. Out of those, 6.3 billion euros are still available.

The Group is also in a position to withstand further burdens from the corona pandemic. Demand for air travel is expected to remain low in the coming winter months due to the global evolution of the pandemic and the associated travel restrictions. According to current planning, the Group's airlines will only offer a maximum of 25% of the previous year's capacity in the fourth quarter to ensure that flight operations continue to generate a positive cash contribution. At the same time, Lufthansa Group is working intensively on restructuring measures in all business segments in order to achieve short and medium-term cost savings and minimize the operating cash outflow.

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She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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