LUFTHANSA SAYS IT WILL TAKE YEARS FOR GLOBAL DEMAND TO RETURN TO PRE-CORONAVIRUS LEVEL

The Lufthansa Group does not expect the aviation industry to quickly return to the pre-coronavirus crisis level in terms of demand.

 

 

Its executive board made the comment as it announced the Group's first restructuring package which takes effect April 8 and will affect almost all of its flight operations.

 

"The Executive Board of Deutsche Lufthansa AG does not expect the aviation industry to return to pre-coronavirus crisis levels very quickly.  According to its assessment, it will take months until the global travel restrictions are completely lifted and years until the worldwide demand for air travel returns to pre-crisis levels," the largest German airline said in a statement.

 

Based on this evaluation, it noted that the Group has decided on extensive measures to reduce the capacity of flight operations and administration long term. 

 

A380, A340, B747 planes to be permanently retired


Part of the Group's restructuring measures includes the permanently decommissioning of six Airbus A380s and seven A340-600s as well as five Boeing 747-400s, and eleven Airbus A320s will be withdrawn from short-haul operations.

 

Lufthansa said the six A380s were already scheduled for sale to Airbus in 2022, while the decision to phase out seven A340-600s and five Boeing 747-400s was taken based on the environment as well as economic disadvantages of these aircraft types.

 

With this decision, Lufthansa said it will be reducing capacity at its hubs in Frankfurt and in Munich.

 

The Lufthansa Cityline will also withdraw three Airbus A340-300 aircraft from service. 

 

Its low-cost unit, Eurowings, will also be reducing the number of its aircraft. In the short-haul segment, an additional ten Airbus A320s are planned to be phased out. 

 

Eurowings long-haul business which is run under the commercial responsibility of Lufthansa will also be reduced.  

 

Germanwings to cease operations

 

Meanwhile, the flights of its subsidiary Germanwings will be discontinued.

 

 

Lufthansa said all options resulting from this closure will be discussed with the respective unions.

 

"The restructuring programs already initiated at Austrian Airlines and Brussels Airlines will be further intensified due to the coronavirus crisis. Among other things, both companies are working on reducing their fleets," Lufthansa said.

 

SWISS International Air Lines will also adjust its fleet size by delaying deliveries of new short-haul aircraft and consider early phase-out of older aircraft.

 

In addition, the Lufthansa Group airlines have already terminated almost all wet-lease agreements with other airlines.