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Lufthansa Shares Lower on Tuesday
Shares in German airliner Lufthansa are trading down a little over 1% pre-market on Wednesday. The airline, which is the largest in Germany, has recently announced plans to make further cuts.
In a staff briefing, which was reported on by Bloomberg, the airline’s CEO Carsten Spohr warned that the airline would need to brace itself for heavy cuts among staff and fleet alike.
Spohr cited the negative impact of quarantine rules as the key driver for the requirement to make further cutbacks. He warned that the rules “have had a catastrophic effect on bookings” adding that “for October, seat reservations stand at less than 10% of a year ago”.
Travel Won’t Recover Until Mid Decade
Looking ahead, the company’s outlook is bleak. They warned that it could take until the middle of the decade for travel levels to return to normal. One of the key challenges facing Lufthansa is that it relies heavily on business customers. Given that the corporate landscape ha...
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