Lufthansa Group profited from a significant market recovery in the second quarter, with a surge in passenger and booking numbers. The relaxation of travel restrictions and a great pent-up demand for travel drove higher demand and increased activity. Between April and June, bookings more than doubled, and just as planned, the capacity offered at the end of June rose to 40 percent of the pre-crisis level.
“All Lufthansa employees worldwide have made great efforts to significantly lower costs in all areas. As a result, we have been able to stop the outflow of funds in the current phase of reviving our business and generate a positive cash flow for the first time since the beginning of the pandemic,” said Carsten Spohr, CEO of Deutsche Lufthansa AG.
“The fact that more than 30,000 colleagues have left us in the process so far hurts us all but is unavoidable to sustainably save the more than 100,000 remaining jobs. This unique crisis is also a unique opportunity for us to accelerate the transformation of Lufthansa to consolidate our global leadership role.”
Thanks to this positive development for the airlines, as well as record results at Lufthansa Cargo and the continued recovery of Lufthansa Technik and the LSG Group, operating losses in Q2 declined by 43 percent to -952 million euros compared with Q1.
Moreover, the adjusted free cash flow in Q2 was positive at 340 million euros, mainly due to strong bookings. The Group is also making faster progress than expected towards reducing more than 3.5 billion euros in costs by 2024. Measures for more than half of the cost reductions have already been implemented.
Group sales in Q2 amounted to 3.2 billion euros, 70 percent higher than the previous year. Based on the Adjusted EBIT, the Group’s operating loss decreased to -952 million euros, compared with -1.7 billion euros in the previous year. Net income in Q2 was -756 million euros, compared with -1.5 billion euros in the previous year.
“In our financial management, our focus remains on strengthening our balance sheet. The second quarter was another step in the right direction. However, there is no way around making the Lufthansa Group profitable again as quickly as possible and implementing further cost reductions,” says Remco Steenbergen, CFO of Deutsche Lufthansa AG.