LUFTHANSA WARNS OF HIGHER CASH DRAIN IN LAST QUARTER

Lufthansa warned it will burn through more cash in the fourth quarter than in the third and that further restructuring measures will weigh on its results as it struggles to cope with the effects of the COVID-19 pandemic, Kirsti Knolle reported for Reuters.

As a result of continuing travel restrictions to curb the virus outbreak, Germany’s flagship airline booked a net loss of 2 billion euros ($2.4 billion) in the third quarter, compared with a profit of 1.2 billion euros the previous year. 

Third-quarter capacity was just 22% of last year’s level, leading to an average monthly operating cash drain of 200 million euros. 

As the airline expects even fewer passengers in the winter, it said that number would grow in October-December, although would not exceed 350 million euros. It aims to return to a positive operating cash flow in the course of the coming year.