Corona-pressured airline Lufthansa expects to need to take a write-down of 1.1 billion euros, equivalent to 11.4 billion SEK, in the third quarter.

At the same time, the company is initiating a third package of measures in the restructuring program, meaning that the previously announced staff cuts of 22,000 full-time equivalents will not be enough. The aircraft fleet will also be reduced.

In the deteriorating outlook, it is now clear that the previous guidance of a recovery to 50 percent of production in the fourth quarter is also not valid. Now it is rather expected to reach between 20 and 30 percent of passenger kilometers in the fourth quarter compared to previous years. 

However, with the measures, Lufthansa will be able to put a band-aid on the cash bleeding and reduce the outflow from 500 million euros per year to 400 million euros. The guidance that the company will turn to a positive operating cash flow in 2021 remains.

Source: di.se