Lufthansa CEO Says No End in Sight to Burning Through Cash | Investing News

FILE PHOTO: Lufthansa CEO Carsten Spohr awaits the arrival of a Lufthansa Cargo aircraft from Shanghai, carrying 8 million protective masks in Munich, Germany, April 7, 2020, as the spread of the coronavirus disease (COVID-19) continues. REUTERS/Andreas GebertReuters

FRANKFURT (Reuters) – Deutsche Lufthansa

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.

(Reporting by Ilona Wissenbach; Writing by Ludwig Burger and Mark Potter)

Copyright 2020 Thomson Reuters.

Source Article

Exit mobile version