LONDON – German company Lufthansa Group (LH) has today recorded heavy losses, with redundancies in significant progress.

The Group has recorded second quarter losses of €1.9bn.

This was due to a 80% drop in revenues, with Lufthansa Cargo & Technik wings generating the most funds at €1.5bn.

Lufthansa H1 Financials

For the first half (1H20) of the year, the Group’s revenue fell by over half to €8.3bn. This compares to €17.4bn in the same period last year.

Losses for that same 1H20 period amounted to €2.9bn, compared to a profit of €418m last year.

Fuel hedging at the airline had a negative result of €782m in 1H20. Further, cash flow for the carrier is in the red, with 1H20 stating a -510 million EUR figure.

This means that net debt has increased by 10% compared with the end of 2019 to €7.3bn.


Due to the Economic Stabilisation Fund (WSF), liquidity at the airline remains strong.

It currently has around €11.8bn in liquidity available as of June 30.

Out of the nine billion EUR bailout, the Group has already received 2.3 billion EUR.

Photo: Hiro Nishikura

Spohr’s Comments

Carsten Spohr, the Chairman and CEO of Deutsche Lufthansa gave some insight into these losses.

“We are experiencing a caesura in global air traffic. We do not expect demand to return to pre-crisis levels before 2024. Especially for long-haul routes there will be no quick recovery.”

“We were able to counteract the effects of the coronavirus pandemic in the first half of the year with strict cost management as well as with the revenues from Lufthansa Technik and Lufthansa Cargo.”

“And we are benefitting from the first signs of recovery on tourist routes, especially with our leisure travel offers of the Eurowings and Edelweiss brands. Nevertheless, we will not be spared a far-reaching restructuring of our business.”

“The entire aviation industry must adapt to a new normal. The pandemic offers our industry a unique opportunity to recalibrate: to question the status quo and, instead of striving for “growth at any price”, to create value in a sustainable and responsible way.”

Photo: Tyler Lorenz

Other Numbers

For the second quarter of this year, the Group handled 1.7 million passengers, which is a 96% decrease.

Capacity at the Group fell by 95% due to the ever-lasting effects of the COVID-19 pandemic.

Ñufthansa recorded seat load factor at 56%, which is a 27% drop compared to the same period last year.

Whilst freight capacity fell by 54%, the cargo load factor rose by 10 per cent to 71%.

For 1H20, LH handled 23.5 million passengers, representing a 66% drop compared to last year.

Capacity dropped by 61%, with load factors falling nine percentage points to 72%.

Cargo load factors for that same period increased by four per cent to 66%.


As part of the “ReNew” program in the company, the Group is making some substantial changes.

There is a forecast from Lufthansa Group that it does not expect pre-crisis levels to return until 2024.

In the meantime, it has decided to go ahead with the reduction of 22,000 full-time jobs.

The Group will also reduced its fleet to at least 100 aircraft.

Based on the initial reduction of 8,300, the Group currently has 129,000 employees in the business.

Looking Ahead

It remains clear that the Lufthansa Group has got over the worst of this pandemic.

Thanks to the German state, it can now begin to restart operations on a gradual basis.

This of course comes without any worries about money, especially due to the sporadic nature of the WSF.

With the Group increasing capacity, it will only be a matter of time before revenues begin to increase again.

Consumer confidence in flying is beginning to rise, and so should the new success of the Group that will come with it.

The Lufthansa Group will be one to look out for, especially in the actions it will take part in on a recovery front.