Lufthansa posts a net loss of 2.1 billion euros

German airline Lufthansa posted a net loss of 2.1 billion euros ($2.35 billion) in the first quarter, writing down the value of assets as the coronavirus pandemic hits the travel sector.

The loss, which compares to a net loss of 342 million euros in the year-earlier period, was driven by write-downs of 266 million on its fleet, as well as write-downs on the book value of catering business LSG North America by 100 million euros and on budget unit Eurowings by 57 million euros, the carrier said on Wednesday.

Lufthansa added it was bracing for a significant decline in full-year earnings before interest and tax, saying it was unable to be more specific amid uncertainty over the pandemic.

According to several reports, Lufthansa’s supervisory board voted on 01 June to accept the terms set by the EU Commission to receive state aid in the form of a 9-billion-euro (10.07-billion-dollar) rescue package from Germany’s Economic Stabilization Fund (WSF).

One of the conditions is that Lufthansa will have to cede a number of start- and landing rights at the Frankfurt and Munich airports to other airlines. Lufthansa shareholders have yet to vote on the deal’s terms.

Via Reuters