Bank expects Lufthansa Group to make E1.5b operating loss in 2020
Credit Suisse is forecasting that Lufthansa will make an operating loss of E1.5b (US$1.7b) this year, and is advocating a move toward leasing aircraft as a means of improving the group’s cash position. The bank had previously predicted an adjusted EBIT of E2.2b. Lufthansa Group made operating profit of E2.03b last year. But the group disclosed March 13 that it would not pay shareholders a dividend in an effort to preserve cash amid the coronavirus crisis. The group intends to cancel up to 70% of its schedule over “the next few weeks”, reduce working hours for staff and postpone planned investments. Its subsidiary Austrian Airlines will terminate all regular flights March 19 “until further notice”. Nonetheless, the bank describes Lufthansa as “one of the strongest players in the industry”. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-03-17/star/bank-expects-lufthansa-group-to-make-e1-5b-operating-loss-in-2020
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Bank expects Lufthansa Group to make E1.5b operating loss in 2020
Credit Suisse is forecasting that Lufthansa will make an operating loss of E1.5b (US$1.7b) this year, and is advocating a move toward leasing aircraft as a means of improving the group’s cash position. The bank had previously predicted an adjusted EBIT of E2.2b. Lufthansa Group made operating profit of E2.03b last year. But the group disclosed March 13 that it would not pay shareholders a dividend in an effort to preserve cash amid the coronavirus crisis. The group intends to cancel up to 70% of its schedule over “the next few weeks”, reduce working hours for staff and postpone planned investments. Its subsidiary Austrian Airlines will terminate all regular flights March 19 “until further notice”. Nonetheless, the bank describes Lufthansa as “one of the strongest players in the industry”. <br/>
