The collapse in air travel demand as a result of the Corona pandemic led to an 80 percent decline in revenue for the Lufthansa Group in the second quarter to 1,9 billion euros (previous year: 9,6 billion euros). Most of the revenue (EUR 1,5 billion) was generated by Lufthansa Cargo and Lufthansa Technik.
The Lufthansa Group currently expects air travel demand to return to pre-crisis levels by 2024 at the earliest. Lufthansa Group has therefore opted for a comprehensive restructuring program called “ReNew”, which also includes the restructuring program already underway at the airlines and service companies.
The goal remains to maintain the global competitiveness and future viability of the Lufthansa Group. The program includes the reduction of 22.000 full-time jobs at the Lufthansa Group. The Group's fleet is to be permanently reduced to at least 100 aircraft. Nevertheless, the capacity offered in 2024 must be in line with that of 2019. To this end, productivity should increase by 2023 percent by 15, including by reducing the number of flight operations (AOCs) to a maximum of ten in the future. The size of the Executive and Management Boards of the Group companies will be reduced and the number of executives in the Group will be reduced by 20 percent.
The administration of Deutsche Lufthansa AG will cut 1.000 jobs. The sum of these measures should make it possible to refinance the resources of the stabilization package as soon as possible. Lufthansa Group's financial planning stipulates that positive cash flows will be generated again in the course of 2021. Lufthansa Group currently (as of June 30, 2020) has 129.400 employees, about 8.300 fewer than last year. The Group's goal was to avoid dismissals as much as possible. Against the background of market developments in global air traffic and on the basis of the course of the negotiations on necessary agreements with the collective labor agreement partners, this goal is no longer realistic for Germany either.
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