Lufthansa profit downChristian Fernsby ▼ | March 19, 2020
Lufthansa today reported lower profit and margin in fiscal 2019, despite higher revenues.
Lufthansa The company plans comprehensive savings measures
The company previously said its adjusted EBIT in 2020 would be significantly below last year.
Carsten Spohr, Chairman of the Executive Board, said, "The spread of the coronavirus has placed the entire global economy and our company as well in an unprecedented state of emergency.
At present, no one can foresee the consequences.... The longer this crisis lasts, the more likely it is that the future of aviation cannot be guaranteed without state aid."
To meet the Covid-19 crisis, the company plans comprehensive savings measures including capacity reductions, short time working mechanism in home markets and suspension of dividend.
Lufthansa also announced drastic cutbacks in its flight operations due to entry restrictions in many countries and a collapse in demand.
Around 700 of the Lufthansa Group's 763 aircraft will be temporarily parked.
The Lufthansa Executive Board has further decided to waive 20 percent of its basic remuneration in 2020. ■