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Thursday, March 28, 2024

Lufthansa vows company revamp as losses balloon

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Lufthansa vows company revamp as losses balloon
Lufthansa vows company revamp as losses balloon

Lufthansa vowed to step up restructuring measures after posting a first-quarter net loss of 2.1 billion euros ($2.35 billion), days after agreeing a state bailout amid the fallout from the coronavirus pandemic.

Edward Baran reports.

Lufthansa vowed Wednesday (June 3) to step up restructuring after posting a first-quarter net loss of 2.1 billion euros - that's 2.35 billion dollars.

It comes days after the German carrier agreed a state bailout amid the worldwide travel slump.

The pledge to slash costs was announced as it braces for a significant decline in earnings this year.

Now the group is in talks with labor representatives over cutbacks.

The first-quarter loss was driven by write-downs of 266 million euros on its fleet.

The airline was forced to ground almost all its aircraft.

On Monday the group's non-executive board approved a 9 billion euro government bailout - which will force it to cede some of its prized landing slots to rivals.

Luthansa suffered a 98 per cent slump in April passenger numbers compared to last year.

But it laid out plans to increase capacity in September to reach 40% of what it had scheduled before the crisis.

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