German airline Lufthansa has reported this Thursday that it has reduced its losses during the second quarter of the year and achieved its first positive cash flow since the outbreak of the pandemic. In parallel, it has implemented faster cost cuts than expected.
Lufthansa which also owns the property of Eurowings, Swiss Air, Brussells and Austrian Airlines has betting that his operating losses have been reduced to 952 million euros (1,130 million dollars). This is 43% less than a year ago and is below the 971 million euros expected on average by the company. For his part, heRevenues have amounted to 3.2 billion versus a slightly higher forecast of 3,300 million.
The German company has also estimated that in the second quarter the inflow of cash has reached 340 million euros, after an exit of 1,130 million a year earlier.
In any case, the airline showed last June its plans to return to profitability as soon as possible with fewer planes in the air and a smaller staff than it had before the pandemic. In addition, they have been maintaining that there will be a high demand for tourist destinations and a recovery in business trips, starting in the second half of the year.
In a statement, the CEO of the Carsten Spohr airline group congratulated himself because “we have been able to stop the outflow of funds in the current phase of reactivation of our business and generate positive cash flow for the first time since the start of the pandemic.
According to their estimates, the group’s airlines have transported 7 million passengers between April and June, 18% of the levels registered in 2019 and the capacity offered improved in parallel until reaching 40% at the end of June.
Lufthansa’s objective is to maintain that 40% of capacity throughout this year, with operating losses lower than the 5.5 billion euros last year. Along that path, projected cost cuts have advanced and half of those planned until 2024 have already been fulfilled. This means six years ahead of time, with a better acceptance than expected in the voluntary redundancy programs in Switzerland and Germany. Specifically, among the plans of the German airline, is the intention to reduce the current fleet by 20% and a snip of personnel costs of about 1,800 million euros.