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Lufthansa will generate positive cash flow this summer, while it should be possible to fully unwind a COVID-19 rescue package in a year’s time, CEO Carsten Spohr said late on Monday. Most Lufthansa flights were grounded by the coronavirus pandemic in early 2020, plunging the airline into crisis and leading the German government to acquire a 20% stake as part of a E6b rescue package. Germany’s economic stabilisation fund said last week it would start selling down its stake in the coming weeks with a view to disposing of it fully by the end of 2023. “We are relieved that the government has entered the process of exiting,” Spohr said, adding that he expected the rescue and stabilisation of the airline to be largely wrapped up next summer. Cost savings mean Lufthansa can generate cash even with passenger numbers at half pre-pandemic levels - a level reached during the summer holiday season, said Spohr. For the year as a whole, Lufthansa can reach 40% of pre-crisis capacity. Lufthansa’s cargo operation was performing strongly and is expected to generate profits of E1b this year, he added. That compares with air cargo profit of E640 in tH1 this year.<br/>

TAP Air Portugal saw its H1 net loss narrow to E493m ($584m) from E582m in the same period last year following a “ramp-up” in activity during the three months to 30 June. However, the Portuguese flag carrier’s operating income for the first six months of 2021 declined by almost 41% year on year to E383m after being “strongly affected” by Covid-19-related travel restrictions in Q1. Passenger numbers in the first half were 56% lower than in the same period of 2020. Capacity, as measured in ASKs, was reduced 41% but RPK traffic fell 60%, causing the airline’s load factor to reduce by 22.8 percentage points to 48.9%. TAP made a Q2 net loss of E128m, compared with one of E187m in the corresponding period last year. The carrier had E542.8m of cash and cash equivalents at 30 June. The airline says it is “expecting the approval” by the EC of its restructuring plan. The Commission last month reapproved rescue aid of E1.2b for TAP, but simultaneously opened an investigation to assess whether the restructuring aid that Portugal plans to grant to the airline is in line with EU state-aid rules.<br/>

Air New Zealand is proposing making Covid-19 vaccination compulsory for about 4000 staff, roughly half its workforce. About 2300 Air New Zealand cabin crew, pilots, engineering and maintenance, airport and supply chain workers are already covered by a mandatory vaccination order introduced by the Government in July. These workers must have had their first Covid-19 vaccine dose by September 30 and be fully vaccinated by early November. So far more than 86% have received their first dose of the vaccine and 82% have received both doses. Air NZ is now considering expanding the requirement for mandatory vaccination to include all staff who interact with customers or their baggage, and those who were required to come into the workplace when public health measures required working from home where possible. Staff have until September 15 to provide feedback. Air NZ’s chief operational integrity and safety officer, captain David Morgan, said the company would make a decision by September 17 after reviewing the feedback. The transmissibility of the Delta variant had shifted the risk profile of Covid-19, and the airline had an obligation to protect the health and safety of its staff and their families, he said. The company had not formed a view on whether it could dismiss staff affected by the proposal who did not want to receive a vaccine. “There are plenty of opportunities within the business for other roles,” Morgan said. He said Air New Zealand was one of the first companies to discuss compulsory vaccination publicly and it would set a precedent.<br/>