Lufthansa narrows quarterly loss, returns to positive cash flow

Lufthansa said on Thursday it further narrowed its losses in the second quarter and recorded its first positive cash flow since the start of the coronavirus crisis, citing faster than planned cost cuts. The group, which also owns Eurowings, Swiss, Brussels and Austrian Airlines, said its adjusted operating loss narrowed to E952m, down 43% from a year earlier and lower than the E971m forecast on average in a company-provided poll. Revenue came in at E3.2b against a E3.3b forecast. Lufthansa, which in June laid out plans to return to profitability with fewer planes and staff than it had before the coronavirus pandemic pummelled the travel industry, said it continued to expect high demand for tourist destinations and recovery in business travel in the second half of the year. The group reported adjusted cash inflow of E340m in Q2 after a E1.13b outflow a year earlier. “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,” CE Carsten Spohr said. The group said its airlines carried 7m passengers in the quarter ending June 30, 18% of the pre-crisis levels in 2019, but as planned offered capacity gradually improved over the quarter to reach 40% at the end of June. Lufthansa also confirmed its target to reach 40% capacity level for the entire year 2021, with the operating loss significantly below last year’s nearly E5.5b. The airline said it has already reached half of the E3.5b in cost cuts targeted by 2024, six months earlier than planned, citing better than expected uptake of voluntary redundancy programs in Germany and Switzerland.<br/>