German carrier Lufthansa forecasts 80% plunge in revenues, no recovery until 2024

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German carrier Lufthansa forecasts 80% plunge in revenues, no recovery until 2024

The German airline group Lufthansa which had secured a €9 billion bailout package from the German Government last month to cushion up the fiscal blows of the global pandemic outbreak in exchange for a 20 per cent stake in the company what the Govt.

said would be selling off by 2023, had reported a net loss of €1.49 billion over the April-June quarter of the year, while the global economy appeared to have stalled and the pandemic-led restrictions had poured fresh scorns over aviation and tourism industries.

Aside from that, Lufthansa, the Europe’s second-largest airline had also warned on Thursday that a full recovery from the pandemic’s fiscal fallout might not be reached until at least end-2024. Tourism and aviation industries had been the heaviest hit in the pandemic-led forced shutdowns as a number of major economies had closed their borders over the second quarter of the year to contain the outbreak.

No quick recovery in sight for Lufthansa

Besides, according to Lufthansa’s bleaker-than-anticipated quarterly earnings’ report which led to a 5 per cent nosedive of Frankfurt-listed shares prices of the German carrier to €8.10 apiece after plunging as much as 2 per cent in the pre-market trading, the Munich-based Germany’s second-largest carrier had reported a 96 per cent plunge in the number of passengers over Q2, 2020, on a year-on-year basis, while the aviation group’s quarterly revenues had taken a hit of 80 per cent drop to €1.9 billion compared to a figure of €9.6 billion at the same time a year earlier.

Apart from that, as the German carrier had also added that a majority of its quarterly revenues had been generated by the European aviation mogul’s cargo and maintenance businesses, pointing towards a further foundering over the coming months since the pandemic appeared to have every potentiality to alter the passengers’ flying behaviour all over the globe, Lufthansa Chief Executive Carsten Spohr said in a post-earnings’ call with the reporters earlier on the day, “Especially for long-haul routes there will be no quick recovery.

(Long-haul routes) will continue to be served only to a very limited extent due to ongoing travel restrictions.