Lufthansa: expects third-quarter loss of 1.3 billion euros
(CercleFinance.com) - Lufthansa said that it would tumble into the red in the third quarter, with the corona crisis continuing to ravage its earnings over the period.
Europe's second largest carrier said that it will post an adjusted operating loss (EBIT) of about 1.26 billion euros for the quarter, almost a mirror image of the 1.30 billion euro profit posted a year ago.
For the first nine months of the year, its operating loss is expected to reach 4.16 billion euros, having crashed from a profit of 1.71 billion euros in the same period of 2019.
In spite of payments of 2 billion euros for corona-related flight cancellations in the past quarter, the German group said that it has managed to reduce its losses from the second quarter.
Lufthansa said it benefited from cost reductions and the postponement of tax payments. Its shares rallied on the news, rising by over 7% on the Frankfurt Stock Exchange on Tuesday.
Even so, demand for air travel is expected to remain lacklustre in the coming winter months due to current developments in the pandemic and resulting travel restrictions, it warned.
According to its current schedule, Lufthansa only plans to offer a quarter of its previous year's capacity at most in the fourth quarter.
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