Airline COVID-19 capacity, network, staff cuts 30MAR-05APR

Lufthansa (LH, Frankfurt Int'l) has agreed with its aircraft suppliers on the postponement of five deliveries originally planned for 2020 and 24 aircraft scheduled for delivery in 2021, CEO Carsten Spohr outlined during an earnings conference call on August 6.

This leaves the carrier with 23 aircraft deliveries in 2020, nine of which were already received in the first half of the year, and 12 deliveries in 2021. As a result, group investments will amount to around USD1.5 billion in 2020.

Lufthansa posted a EUR1.7 billion euro (USD2 billion) loss in a single quarter on August 6, resulting in a net loss of EUR3.6 billion (USD4.2 billion) for the first six months.

The airline, which secured a EUR9 billion (USD10.5 billion) state bailout in June, carried in April, May, and June just 4% of the number of passengers it carried during the same quarter last year. It now expects capacity to rise to just 50% by the end of 2020 and two-thirds in 2021.

This outlook is more pessimistic than at Air France-KLM,...

The Belgian government and Lufthansa (LH, Frankfurt Int'l) have reportedly agreed, after months of back-and-forth, on the terms of a EUR460 million euro (USD bailout) for Brussels Airlines (SN, Brussels National), which do not include the state taking any stake in the carrier, public broadcaster VRT has reported.

According to the terms of the agreement, the Belgian government will loan the airline EUR290 million repayable by 2026. Lufthansa, for its part, committed to recapitalise its Belgian subsidiary with EUR170 million, of which EUR70 million will be earmarked for restructuring of the airline.

In return for its contribution to the rescue, the Belgian government secured a commitment by Lufthansa to keep Brussels National as one of its hubs and develop the airport. In addition, the German parent pledged to retain the brand of Brussels Airlines and its corporate headquarters in Belgium.

The deal still requires approvals by the full Belgian cabinet and the board of Lufthansa. It has yet to be made public.

The agreement was reached just days after the Belgian...