The Lufthansa Group has reported a second quarter net loss of €756 million or (€1.26) per share on a year-over-year increase in revenue of 70 percent to €3.2 billion. The Group closed the quarter with €11.1 billion in liquidity, including unused stabilization funds of €3.9 B.
On Thursday (August 5, 2021), The Lufthansa Group reported their second quarter financial results for the period ending June 30, 2021. The Group reported a second quarter net loss of €756 million or (€1.26) per share on a 71 percent year-over-year increase in revenue to €3.2 billion. The company’s adjusted second quarter EBIT improved versus Q2 2020 by 43 percent to (€952) million. During the second quarter, the company’s adjusted free cash flow turned positive for the first time since the onset of the pandemic at €340 million. On June 30, 2021, the Group’s liquidity was €11.1 billion, including unused government stabilization measures and loans of approximately €3.9 billion. The total does not include €1.0 billion raised through a bond issue in July 2021.
In Friday’s announcement, Deutsche Lufthansa AG’s CEO, Carsten Spohr, said,
“All Lufthansa employees worldwide have made great efforts to significantly lower costs in all areas. As a result, we have been able to stop the outflow of funds in the current phase of reviving our business and generate a positive cash flow for the first time since the beginning of the pandemic. The fact that more than 30,000 colleagues have left us in the process so far hurts us all, but is unavoidable to sustainably save the more than 100,000 remaining jobs. This unique crisis is also a unique opportunity for us to accelerate the transformation of Lufthansa in order to consolidate our global leadership role.”
Also commenting on the airline’s second quarter results, Deutsche Lufthansa AG’s CFO, Remco Steenbergen, said,
“In our financial management, our focus remains on strengthening our balance sheet. The second quarter was another step in the right direction. However, there is no way around making the Lufthansa Group profitable again as quickly as possible and implementing further cost reductions.”
The Group is accelerating their plan to reduce more than €3.5 in costs by 2024. The voluntary programs offered in Germany and planned job cuts at SWISS have contributed to sustainable cost reductions. The Group expects that around 1,500 ground staff and just under 400 cockpit crew in Germany alone will take advantage of current offers to leave the company. By the end of the year, 2,000 full-time jobs in Switzerland will be cut, including around 500 forced dismissals. The Group closed the first half of the year with 108,000 team members, a reduction of around 30,000 since the onset of the global COVID-19 pandemic.
Source: Lufthansa Group