Lufthansa reports steep loss amid coronavirus woes

Deutsche Lufthansa AG said Thursday that it swung to a heavy loss in its third quarter, but it confirmed its 2021 cash target despite what is likely to be a bleak winter due to increasing travel restrictions related to the pandemic.

The German airline posted a quarterly net loss of 1.97 billion euros ($2.31 billion), compared with a net profit of EUR1.15 billion a year earlier.

Revenue plunged 74% to EUR2.66 billion, it said. Adjusted loss before interest and taxes was EUR1.26 billion and adjusted free cash outflow stood at EUR2.07 billion, in line with preliminary figures.

“We are now at the beginning of a winter that will be hard and challenging for our industry,” Chief Executive Carsten Spohr said, adding that “we are determined to use the inevitable restructuring to further expand our relative competitive advantage.”

The carrier said it expects continuing restructuring measures to result in noncash one-time expenses–whose amount will mainly depend on further negotiations with social partners–in its fourth quarter that will affect adjusted EBIT.

Lufthansa confirmed its target to return to positive operating cash flow in 2021, and said its monthly operating cash drain should be around EUR350 million during the last three months of the year.

Olivia Bugault

source:marketwatch.com