Plus   Neg

Lufthansa Announces Further Reductions To Fleet Size

German airline Deutsche Lufthansa AG (DLAKF,DLAKY) Monday announced further cut to its fleet size and workforce as the coronavirus crisis continues to impact the airline industry. The company will take a 1.1 billion euro or $1.3 billion impairment on the value of its aircraft.

Lufthansa said it it now expects capacity for the passenger airlines to be in range of 20 and 30 percent, down from the previous assumption of an average level of 50 percent.

As a results, the company announced a group-wide capacity reduction of 150 aircraft by the middle of this decade. The fleet reduction decision will result in a further impairment of up to 1.1 billion euros. The amount is expected to be accounted for in the third quarter of the current year.

The company plans a streamlined management structure with a 20 percent reduction of management positions to be implemented in the first quarter of 2021.

Lufthansa aims to reduce its monthly cash flow by around 100 million euros per month to around 400 million.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Door County Coffee & Tea Co. has recalled its 5.1 ounce packages of French Vanilla Flavored Cappuccino Single Serve Cups citing the potential to be contaminated with undeclared Milk and Soy, the U.S. Food and Drug Administration said. The affected product comes in a 5.1 ounce full color cardboard box that contains 10 single serve cups, under the brand name Door County Coffee & Tea. Intel Corp. said it is probing into the hack of its fourth-quarter earnings report that prompted the chipmaker to release its earnings statement ahead of schedule. The company, which was scheduled to release the results after the market closed, released it before the market closing on Thursday. Google parent Alphabet decided to drop its Internet balloon project Loon that was launched with the idea of providing Internet access to rural areas and providing last mile connectivity. In a blog post, Loon CEO Alastair Westgarth said they have not found a way to get the costs low enough to build a long-term, sustainable business, despite gaining a number of interested partners along the way.
Follow RTT