Lufthansa CEO says no end in sight to burning through cash

In this news, we discuss the Lufthansa CEO says no end in sight to burning through cash.

FRANKFURT (Reuters) – Deutsche Lufthansa LHAG.DE is burning cash at the rate of 500 million euros ($ 590 million) per month and is far from breaking even, the company’s chief executive said on Monday German airline.

Speaking at an event organized by the BDI association of German industrial companies in Berlin, Carsten Spohr said the airline group, hit by the worsening coronavirus situation in Europe, hoped to stop the release of cash once it reaches a seat utilization rate of around 50%. capacity.

“It’s absolutely not predictable. We are happy if we can reach 20% in winter, ”he added.

Lufthansa, which received a € 9 billion bailout from the government in June, last month announced further fleet and workforce cuts and a € 1.1 billion write-down on planes idling.

Spohr added on Monday that he was certain the group would survive the crisis.

Reporting by Ilona Wissenbach; Writing by Ludwig Burger and Mark Potter

Original © Thomson Reuters

Originally posted 2020-10-06 01:46:09.

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