Lufthansa warns of subdued demand for another four years
Lufthansa has warned that travel demand is unlikely to rebound to pre-Covid levels until 2024 after reporting a dire financial performance.
The airline said the collapse in demand saw passenger numbers fall 96% between April and June, leading to an 80% decline in second-quarter revenue to 1.9 billion euros.
The second quarter loss of 1.7 million euros is understood to have been its worst ever quarterly performance.
"We are experiencing a caesura (pause) in global air traffic," Chief Executive Carsten Spohr said. "We do not expect demand to return to pre-crisis levels before 2024. Especially for long-haul routes there will be no quick recovery."
Lufthansa said that while it was able to ‘counteract the effects of the coronavirus pandemic’ during the first half of the year with strict cost management and revenues from Lufthansa Technik and its cargo division, it will ‘not be spared a far-reaching restructuring of the business.
It is aiming to reduce 22,000 full time jobs.
"We are convinced that the entire aviation industry must adapt to a new normal," Spohr said. "The pandemic offers our industry a unique opportunity to recalibrate: to question the status quo and, instead of striving for ‘growth at any price’, to create value in a sustainable and responsible way."
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
TAP Air Portugal to operate 29 flights due to strike on December 11
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Airbnb eyes a loyalty program but details remain under wraps