Markets

Lufthansa Announces Further Reductions To Fleet Size

(RTTNews) - German airline Deutsche Lufthansa AG (DLAKF, DLAKY) Monday announced further cut to its fleet size and workforce as the coronavirus crisis continues to impact the airline industry. The company will take a 1.1 billion euro or $1.3 billion impairment on the value of its aircraft.

Lufthansa said it it now expects capacity for the passenger airlines to be in range of 20 and 30 percent, down from the previous assumption of an average level of 50 percent.

As a results, the company announced a group-wide capacity reduction of 150 aircraft by the middle of this decade. The fleet reduction decision will result in a further impairment of up to 1.1 billion euros. The amount is expected to be accounted for in the third quarter of the current year.

The company plans a streamlined management structure with a 20 percent reduction of management positions to be implemented in the first quarter of 2021.

Lufthansa aims to reduce its monthly cash flow by around 100 million euros per month to around 400 million.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

DLAKF DLAKY

Latest Markets Videos

RTTNews

Founded in the late 1990s by Andrew Mariathasan in New York, with the goal of covering Wall Street for a new generation of investors, RTTNews has expanded steadily over the years to become a trusted provider of content for a wide array of subjects across several platforms. RTT's Financial Newswire is relied upon by some of the world's largest financial institutions, including banks, brokerages, trading platforms and financial exchanges.

Learn More