Lufthansa trims flight capacity outlook on slower recovery

Lufthansa lowered its capacity forecast for flights this year as hopes dwindle for an early summer travel rebound, but the German airline's cost-cutting drive narrowed quarterly losses. The group, which includes Austrian Airlines, Swiss and Eurowings, also stepped up warnings to German unions that it is ready to use forced dismissals to cut more jobs. The travel industry has suffered many false starts to a hoped-for recovery, beset by new restrictions, virus variant outbreaks and a sluggish European vaccine rollout. Lufthansa said it expects to fly at about only 40% of its pre-pandemic capacity in 2021, trimming the 40%-50% guidance issued less than two months earlier. The group predicted a gradual demand pick-up in April-June and a "significant market recovery" in the second half, citing moves by the European Union towards opening up transatlantic travel to vaccinated US visitors. "We know that bookings shoot up wherever restrictions are loosened and travel becomes possible again," CE Carsten Spohr said. Lufthansa's quarterly sales came to E2.6b, down 60% on a year-earlier period that was only partially impacted by the onset of the pandemic.<br/>