Home finance Lufthansa warns of further restructuring costs in fourth-quarter

Lufthansa warns of further restructuring costs in fourth-quarter

Lufthansa warns of further restructuring costs in fourth-quarter

© Reuters. FILE PHOTO: Lufthansa planes are seen parked on the tarmac of Frankfurt Airport

BERLIN (Reuters) – Lufthansa (DE:) on Thursday said it booked a net loss of 2 billion euros (1.8 billion pounds) in the third quarter due to the pandemic-related slump in travelling and said further restructuring measures would weigh on fourth-quarter figures.

The amount of the expected restructuring costs will depend on the negotiations with trade unions, the group said.

The airline, which has already announced plans to cut 20% of its leadership positions and 1,000 administrative jobs, aims to slash 22,000 full-time jobs.

Lufthansa said the average monthly operating cash drain was at 200 million euros in the third quarter. As the airline expects even fewer passengers in the colder months, it said that number will grow in the October-December period but not exceed 350 million euros.

“We want to return to a positive operating cash flow in the course of the coming year,” said Chief Executive Carsten Spohr in a statement. “In order to achieve this, we are advancing restructuring programs throughout the group.”

Operating expenses were cut by 43% in the third quarter compared to the previous year, helped by significantly lower fuel costs and fees. Sales fell to 2.7 billion euros from 10.1 billion euros.

The German airline, which secured a 9 billion euro state bailout in June, said it had liquidity of 10.1 billion euros available.

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