widthInfrequent is a success factor for large airlines. As long as the travel restrictions on the United States and Asia are not relaxed after the coronavirus pandemic, Lufthansa It is far from realizing the benefits of its global presence.
In this environment, the current increasing number of European travel bookings is hopeful. But in order to restore the consistent advantages of international airlines, only for strategic reasons, the revitalization of long-distance business is essential. After all, before the outbreak of the new crown virus crisis, long-haul flights to North America accounted for 50% of Lufthansa’s flight capacity, and its share of profit in the passenger business was equally high.
Back to entrepreneurial freedom
The US travel restrictions on vaccinated passengers from Europe may be lifted in the fall, while China may be lifted at the end of the year. This is the most important hope of corporate executives. Carsten Spor.
In order to make the financial sector feel comfortable with the planned huge capital increase, the management can refer to the success that the group’s imminent material losses have ceased after the current figures appear. The impact of increased bookings in Europe and a rigorous savings plan will cause the group to cut about 30,000 jobs, and the impact is obvious. In addition to lower daily business losses, Lufthansa’s chief financial officer Remco Steenbergen can also announce the inflow of liquidity (cash flow) to the group for the first time since the beginning of the crisis.
Compared with passenger transportation, at least subsidiaries Lufthansa Cargo (freight), Lufthansa Technik (maintenance) and LSG (inflight catering) can directly benefit from their parent company’s global operations. In the current half-year balance sheet, their contribution to earnings is significantly higher than before.
Despite the corona crisis, the fact that Spohr still keeps his airline operating must first convince investors. Because the Lufthansa boss is trying to get rid of his main state shareholder from Berlin as soon as possible, and quickly repay the federal government’s state aid of about 4 billion euros. Only if there is no major shareholder, Spohr can regain the freedom of entrepreneurship, and he needs to re-adjust his group in terms of the integration of the aviation industry. However, Spohr and his chief financial officer are asking whether the planned capital increase will take place before the federal election in September.
