Lufthansa: big Q2 operating loss, but stock up

(CercleFinance.com) - Lufthansa said on Thursday that the coronavirus crisis had had a considerable impact on its second quarter results.


Despite significant cost reductions by the German airline, the quarter ended with an operating loss of 1.7 billion euros, compared to an operating profit of 754 million euros a year earlier.

Quarterly revenues fell by 80% to 1.9 billion euros, a far cry from the 9.6 billion euros reported in the second quarter of 2019.

The group said that most of revenues (1.5 billion euros) in the past quarter was generated by its air cargo business, Lufthansa Cargo, and its aeronautical technical services division, Lufthansa Technik.

Germany's largest airline - which announced its intention to make some 22,000 redundancies - confirmed that it expects an operating loss for the second half of the year.

The only truly good news in the publication is that Lufthansa says it was able to use 20% of its fleet capacity in July, with a load factor of over 70% on European flights.

Investors seemed to ignore its problems and focus on this plus point, with the share price up almost 7% in late Thursday morning trading on the Frankfurt Stock Exchange.


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