Lufthansa to cut fleet, jobs as gloom spreads across airline sector

Lufthansa announced further cuts to its fleet and workforce on Monday along with a 1.1 billion euro (1.01 billion pounds) impairment on idled aircraft as Europe’s worsening coronavirus situation spread gloom across the airline sector.

The German airline group, hit hard by its reliance on Asian and other long-haul routes as well as stalled business travel, said it now expects to operate at only 20-30% of capacity in the fourth quarter.

“The outlook for international air traffic has significantly worsened in recent weeks,” it said.

Lufthansa now plans to reduce its fleet by 150 aircraft – 50 more than previously planned – and cut more jobs than the 22,000 full-time equivalent positions already identified as surplus.

The beginnings of a summer rebound proved short-lived in Europe, as resurgent COVID-19 infection rates in Spain, France and elsewhere prompted new travel curbs and quarantines, which have been criticised by airlines as a disproportionate travel deterrent.

The replacement of quarantines with pre-flight virus tests is “an essential prerequisite” to a recovery, Lufthansa said.

via Reuters