Lufthansa reports steep loss, warns of restructuring costs
Operating expenses were cut by 43% in the third quarter compared to the previous year
Stocks impacted: Lufthansa (LHA)
Germany’s flagship airline booked a net loss of 2 billion euros in the third quarter, compared with a profit of 1.2 billion euros the previous year. The average monthly operating cash drain was 200 million euros. Sales fell to 2.7 billion euros versus 10.1 billion in the previous year. Meanwhile, operating expenses were cut by 43% in the third quarter compared to the previous year, with strict liquidity management limiting the cash outflows. At the same time, Lufthansa confirmed it aims to increase capacity to around 25% towards the end of the year. The company also warned it will burn through more cash in the fourth quarter than in the third while further restructuring measures will weigh on its results amid the COVID-19 pandemic. Despite the report being mostly negative, Lufthansa stocks were trading 0.5% higher following the report.
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