Lufthansa CEO says no end in sight to burning through cash By Reuters

Lufthansa CEO says no end in sight to burning through


© Reuters. FILE PHOTO: The spread of the coronavirus disease (COVID-19) in Munich

FRANKFURT (Reuters) – Deutsche Lufthansa (DE:) is burning cash at a rate of 500 million euros ($590 million) per month and is far from breaking even, the German airline’s chief executive said on Monday.

Speaking at an event run by the BDI association of German industrial companies in Berlin, Carsten Spohr said the airlines group, hit by Europe’s worsening coronavirus situation, was hoping to stop the outflow of cash once it reached a utilisation rate of about 50% for seat capacity.

“That is absolutely not foreseeable. We are happy if we can reach 20% during winter,” he added.

Lufthansa, which in June received a 9 billion euro government bailout, last month announced further cuts to its fleet and workforce along with a 1.1 billion euro impairment on idled aircraft.

Spohr added on Monday he was certain the group would weather the crisis.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME