Airline industry may not survive without state aid – Lufthansa

The airline industry may not survive without state aid if the coronavirus pandemic lasts a long time, Lufthansa warned on Thursday, predicting it would emerge into a “different world” after the crisis.

Like many of its rivals, Lufthansa has slashed flights, cut working hours and suspended its dividend to try to cope with the fallout from a crisis that has seen governments impose draconian travel restrictions and bookings evaporate.

“Our business, and I speak with 30 years experience, is in an extraordinary situation,” CEO Carsten Spohr told reporters.

“For weeks, hardly anyone has wanted to fly. Now, hardly anyone can.”

The German group stopped short of requesting state loans, however, saying it was cutting costs where it can so it can ride out a crisis that has forced it to ground 700 planes and slash passenger capacity by 95%.

Global airlines group IATA has forecast the industry will need up to $200 billion of state support.

“This crisis will sustainably and structurally change our industry,” Spohr said. “But we believe that we are well prepared and have experience in crisis management.”

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