Lufthansa estimates its revenue fell 47% in March and 18% throughout the quarter

Lufthansa Group estimates that its income fell by 47% during the month of March compared to the same month of the previous year, which is about 1,400 million euros less, while its total turnover for the quarter would have fallen 18%, up to 6,400 million euros.

The company has released some details of the preliminary financial report on Thursday, which will be definitively presented in mid-May after having postponed the date, originally scheduled for April 30.

According to these data, the reduction in costs derived from the paralysis of the fleet and the rest of the administrative and labor measures that it has implemented only «partially» compensate the drop in income.

As a preliminary, the group’s adjusted Ebit in the first quarter would reach the negative figure of 1,200 million euros. Furthermore, it expects that the impairment of assets related to this crisis and the negative evolution of the value of fuel hedges will also have a negative impact on the profit for the quarter.

The group notes that «it is not possible» to anticipate when air traffic will resume beyond repatriation operations, so it expects «considerably» higher operational losses for the second quarter compared to the first quarter.

At this time, the group’s liquidity amounts to around 4,400 million euros, reinforced by the financing measures of 900 million euros applied since mid-March, consisting of bilateral lines of credit and short-term loans.

However, the group expects liquidity to drop significantly in the coming weeks as a result of existing liabilities, amounting to billions, related to trade debts and ticket repayments, as well as upcoming repayments of financial liabilities.

The company does not expect that the resulting capital needs can be met through new loans, which is why it is negotiating with the countries of its airlines – Germany, Austria, Switzerland and Luxembourg – to try to obtain financing instruments that guarantee your solvency in the near future. In this regard, the board trusts «that the talks will end successfully.»