Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  Deutsche Lufthansa AG    LHA   DE0008232125

DEUTSCHE LUFTHANSA AG

(LHA)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Deutsche Lufthansa : Lufthansa decides on third package within restructuring program

share with twitter share with LinkedIn share with facebook
09/22/2020 | 10:26am EDT

Lufthansa decides on third package within restructuring program.

Highlights:

Significantly lower air traffic recovery than what was expected in summer

Further reductions in fleet size and personnel

The value of long-term parked aircraft and aircraft scheduled for grounding will be impaired by up to EUR 1.1 billion in the third quarter

Operating cash flow to be reduced by EUR 100 million per month

The outlook for international air traffic has significantly worsened in recent weeks. With the summer travel season coming to an end, passenger and booking figures are declining again, after slight signs of recovery were still evident in July and August. In view of these developments, the Executive Board of Deutsche Lufthansa AG approved the third package within the Group-wide 'ReNew' restructuring program today and informed the Supervisory Board accordingly.

In detail, the Executive Board adopted the following resolutions:

The capacity outlook for the passenger airlines will be significantly revised; the previous assumption that an average production level of 50 percent of the previous year's value would be reached in the fourth quarter of the year no longer seems realistic. If the current trend continues, the available seat kilometres will probably only be in a range between 20 and 30 percent, compared to the previous year.

The medium term fleet planning will be adjusted and currently foresees a permanent, Group-wide capacity reduction of 150 aircraft by the middle of this decade (starting point is the Group fleet including wet-leased aircraft).

In addition to the fleet changes already communicated, the following decisions have been made: After six Airbus A380s were finally taken out of service in the spring, the remaining eight A380s and ten A340-600s, which were previously intended for flight service, will be transferred to long-term storage and removed from planning. These aircraft will only be reactivated in the event of an unexpectedly rapid market recovery. In addition, the remaining seven Airbus A340-600s will be permanently decommissioned.

The fleet decisions mentioned above will result in a further impairment of up to EUR 1.1 billion. The amount is expected to be accounted for in the third quarter of the current year.

The previously announced personnel surplus amounting to 22,000 full-time positions will increase as a result of the decisions taken in regards to the third package within the restructuring program. The change in permanent staffing levels within flight operations will be further adjusted in regards to market development. The compensation and reduction of personnel surplus will be discussed with the responsible employee representatives.

Irrespective of the negotiations on reconciliations of interests and social plans for redundancies within the Lufthansa Group, the Executive Board's objective remains agreeing on crisis packages with the collective bargaining partners that limit the number of necessary redundancies.

Despite the worsened outlook, the revised financial planning intends to further reduce cash outflows through strict cost management. The outflow of liquidity is to be reduced from currently around EUR 500 million per month to an average of EUR 400 million per month in winter 2020/21. The previously communicated Group target of returning to positive operating cash flows during 2021 is being reinforced.

A streamlined management structure with a 20 percent reduction of management positions is to be implemented in the first quarter of 2021. To simplify and clearly define responsibilities, the functional process organization (matrix) will be focused on core functions of Lufthansa Group Airlines. For all other areas, a new management model with clearly assigned responsibilities (decentralized or centralized, depending on the process) will be introduced.

The administrative office space will be reviewed worldwide and reduced by 30 percent in Germany.

In the Executive Board's assessment, the continuing high level of uncertainty in global air traffic makes short-term adjustments to the current market situation

unavoidable for the foreseeable future. The Board considers the expansion of corona tests prior to departure an essential prerequisite for the resumption of global mobility. Consistent testing is possible, increases safety for travellers and is a better alternative than changing inconsistent entry and quarantine regulations.

Contact

Media Relations

Lufthansa Group

Germany

lufthansa-group@dlh.de

+49 69 696 2999

(C) 2020 Electronic News Publishing, source ENP Newswire


share with twitter share with LinkedIn share with facebook
All news about DEUTSCHE LUFTHANSA AG
11:42aDEUTSCHE LUFTHANSA : Lufthansa braces for very slow recovery in passenger demand
RE
10:00aDEUTSCHE LUFTHANSA : Publication pursuant to section 40 (1) WpHG
PU
09:35aDEUTSCHE LUFTHANSA AG : Release according to Article 40, Section 1 of the WpHG [..
EQ
09:35aDEUTSCHE LUFTHANSA AG : Release according to Article 40, Section 1 of the WpHG [..
EQ
09:18aDEUTSCHE LUFTHANSA : Lufthansa braces for very slow recovery in passenger demand
RE
09:18aLufthansa expects slow recovery in demand from business customers -board memb..
RE
09:18aLufthansa sees 2021 q1 capacity at up to 25% of last year's level -board memb..
RE
09:18aLufthansa hopes to reach 50-60% of its pre-crisis capacity over the course of..
RE
10/26EQT kicks off sale of German facilities manager Apleona - sources
RE
10/26Miss airline food? Finnair selling business class meals in supermarket
RE
More news
Financials
Sales 2020 16 412 M 19 382 M 19 382 M
Net income 2020 -5 183 M -6 121 M -6 121 M
Net Debt 2020 12 710 M 15 011 M 15 011 M
P/E ratio 2020 -0,79x
Yield 2020 -
Capitalization 4 556 M 5 392 M 5 381 M
EV / Sales 2020 1,05x
EV / Sales 2021 0,69x
Nbr of Employees 129 356
Free-Float 83,3%
Chart DEUTSCHE LUFTHANSA AG
Duration : Period :
Deutsche Lufthansa AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DEUTSCHE LUFTHANSA AG
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus SELL
Number of Analysts 22
Average target price 5,64 €
Last Close Price 7,62 €
Spread / Highest target 85,0%
Spread / Average Target -26,0%
Spread / Lowest Target -80,3%
EPS Revisions
Managers
NameTitle
Carsten Spohr Chairman-Executive Board & CEO
Karl-Ludwig Kley Chairman-Supervisory Board
Roland Schütze Chief Information Officer
Christine Behle Deputy Chairman-Supervisory Board
Christina Weber Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
DEUTSCHE LUFTHANSA AG-50.94%5 686
DELTA AIR LINES, INC.-45.40%20 280
RYANAIR HOLDINGS PLC-13.26%16 875
AIR CHINA LIMITED-33.25%13 782
CHINA SOUTHERN AIRLINES COMPANY LIMITED-18.51%11 985
CHINA EASTERN AIRLINES CORPORATION LIMITED-17.90%10 403