Lufthansa Reports 2.1 Billion Euro Net Loss in Q1 Due to COVID-19 Impact

[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Europe's largest airline, Lufthansa, recorded a net loss of 2.1 billion euros (approximately 2.86 trillion KRW) in the first quarter of this year due to the impact of the novel coronavirus disease (COVID-19).

According to CNBC on the 2nd (local time), Lufthansa announced that it recorded a net loss of 2.1 billion euros in the first quarter of this year, significantly increasing the deficit compared to the net loss of 342 million euros in the same period last year. Lufthansa added that it suffered severe damage from COVID-19 in the first quarter of this year and that restructuring is necessary.

Due to lockdown measures implemented by various countries amid COVID-19, overseas travel and tourism industries have been stagnant for a long time, causing serious management difficulties for many airlines including Lufthansa. Previously, Lufthansa agreed to transfer the usage rights of 24 boarding gates it holds at Frankfurt and Munich airports to other airlines on the condition of receiving 9 billion euros in support from the German government.

As part of this negotiation, the German government acquired a 20% stake in Lufthansa. Lufthansa's stock price has fallen more than 42% compared to the beginning of the year.

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