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Bloomberg
Deutsche Lufthansa AG is expecting long-haul travel to finally pick up this year alongside loosening Covid-19 restrictions and vaccine take up, giving some cause for optimism after a second-quarter loss of 952 million euros ($1.13 billion).
North America could open up from late summer with Asia following from the end of the year, the company said in a statement. Despite rising expectations, the carrier kept its 2021 capacity forecast unchanged at 40% of pre-pandemic levels.
The operating loss for the second quarter was greater than the 766 million-euro average of analysts’ estimates, though narrower than the 1.7 billion-euro loss a year earlier. Strong bookings pushed adjusted free cash flow into positive territory during the quarter, although the overall cash drain remained at 200 million euros per month, in line with previous guidance.
Europe’s three big airline groups are starting to see a path out of the coronavirus crisis as regional governments ease quarantine rules that have battered the industry, yet a significant chunk of their businesses are tied to still-closed long-distance routes.
British Airways parent IAG SA said last week it will offer only 45% of 2019 capacity this quarter, while Air France-KLM plans to fly up to 70% of its usual seats and return to profit.
The figures showed “green shoots of recovery,†Sanford C Bernstein analyst Daniel Roeska said in an emailed note, adding a lot of work lies ahead to complete a broader restructuring of the group.