Deutsche Lufthansa AG's annual loss reached € 6.7 billion ($ 8.1 billion), as the company stated that it will take longer than previously expected to achieve a full recovery from the Coronavirus crisis.
According to ArabiaNet, Europe's largest airline group said it will struggle to make money on flights before the end of this year as it returns capacity plans. Chief Executive Carsten Spur said there is still a recovery this summer, but only if the pace of vaccinations allows for international restrictions to be eased, according to Bloomberg and seen by Al Arabiya.net.
Spur added in a statement: "We expect demand to rise again once the restrictive travel restrictions are reduced through the publication of more tests and vaccines." Internationally recognized digital vaccination and test certificates must replace travel bans and quarantines.
and warned, that his airline may be able to operate only 90% of its capacity before the outbreak of the epidemic until the middle of the decade, indicating a deterioration in his confidence in the recovery After the company had previously suggested that the market may fully recover by 2024.
Lufthansa now expects to operate between 40% and 50% of capacity for 2019 this year, compared to the previous target of 40% to 60%.
Lufthansa cut capital spending by two-thirds in 2020 and said spending on aircraft will shrink in the coming years as it will reduce the fleet to 650 aircraft by 2023 from more than 750 in End of last year.
The airline is also considering whether to permanently remove all models over 25 years old from service.
full-year revenue fell 63% to € 13.5 billion.
