Lufthansa Group reports net loss of €3.6 billion for first half of 2020

The collapse in demand for air travel due to the CORONA pandemic led to an 80% drop in revenue for the Lufthansa Group in the second quarter to €1.9 billion (previous year: €9.6 billion). Most of the revenue (€1.5 billion) was generated by Lufthansa Cargo and Lufthansa Technik.

The Lufthansa Group Adjusted EBIT in the quarter under review amounted to minus €1.7 billion (previous year: €754 million), despite extensive cost reductions. Operating expenses were reduced by 59%, primarily through the introduction of short-time working for large parts of the workforce and the cancellation of non-essential expenditures. The consolidated net income of Lufthansa Group for the months April to June amounted to minus €1.5 billion (previous year: €226 million).

The logistics division benefited from stable demand. The loss of cargo capacity in passenger aircraft led to a significant increase in yields. Lufthansa Cargo’s Adjusted EBIT thus rose to €299 million (previous year: minus €9 million).

In the entire first half of 2020, Lufthansa Group revenue fell by 52% to €8.3 billion (previous year: €17.4 billion). Adjusted EBIT amounted to minus €2.9 billion (previous year: €418 million) and EBIT to minus €3.5 billion (previous year: €417 million). The difference between the two figures is mainly due to depreciation on aircraft and aircraft usage rights amounting to €300 million, goodwill impairments totaling €157 million and the impairment of joint venture holdings in the MRO segment totaling €62 million.

In addition, the negative market value development of fuel cost hedging contracts had a negative impact of €782 million on the financial result in the first six months of the year. Compared with the first quarter, this effect decreased by €205 million. The Lufthansa Group net result for the first half of the year thus amounted to minus €3.6 billion (previous year: minus €116 million).