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Deutsche Lufthansa AG posted a record annual loss of 6.7 billion euros ($ 8.1 billion) and said it would take longer than expected to fully recover from the coronavirus crisis.
Europe’s largest airline said on Thursday it would struggle to make money on flights before the end of this year as it surrenders its capacity plans. Chief Executive Carsten Spur said there was still a recovery this summer, but only if the pace of vaccinations allows for the relaxation of international restrictions, according to Bloomberg, and seen by Al-Arabiya.net.
“We expect demand to increase again once restrictive travel restrictions are reduced through the rollout of more tests and vaccines,” Spur added in a statement. “Internationally recognized digital vaccination and test certificates should replace travel bans and quarantines.”
And he warned his airline might be able to operate just 90% of its capacity before the outbreak began until the middle of the decade, indicating a deterioration in his confidence in the recovery after the company had slipped. previously suggested that the market could recover completely. by 2024.
Lufthansa now plans to operate between 40% and 50% of its capacity in 2019 this year, against the previous target of 40% to 60%.
Lufthansa has cut capital spending by two-thirds in 2020 and said spending on aircraft will decline in the coming years as it will reduce the fleet to 650 planes by 2023, up from more than 750 at the end of the year. last year.
The airline is also considering permanently removing all models over 25 years from service.
Full-year turnover fell 63% to 13.5 billion euros.
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