Lufthansa Records €1.26bn Operating Loss
Deutsche Lufthansa has recorded a third-quarter operating loss of €1.26 billion and warned of weak demand during the remainder of the year.
The German carrier said that the loss, which compares with a quarterly profit of €1.3 billion a year earlier, narrowed from the second quarter because it was able to resume some flights and slash costs.
"Demand for air travel is expected to remain low in the coming winter months due to the global evolution of the pandemic and the associated travel restrictions," it said, adding that it will "withstand further burdens from the corona pandemic".
As a result, Lufthansa group's airlines, which are based in Germany, Switzerland, Austria and Belgium, will likely only offer up to 25% of the last year's capacity in the fourth quarter.
Adjusted Free Cash Flow And Cash Reserves
Adjusted free cash flow during the three months through September fell to a negative €2.07 billion from a positive €416 million last year, driven by the reimbursement of €2 billion for pandemic-related flight cancellations.
The airlines group said that it still has cash reserves of €10.1 billion, including €6.3 billion in undrawn state funds from a bailout granted earlier this year by a number of European governments.