Lufthansa Reports Net Loss of 1.5 Billion Euros in Q2 as Pandemic Paralyses Aviation Industry

The German carrier has been severely hit by the pandemic, with media suggesting it might declare bankruptcy several months ago. In June, however, the European Commission approved a move by the German government to bail out the company for 6 billion euros amid the crisis.

The German flagship airline Lufthansa on Thursday stated it had recorded second-quarter losses of 1.5 billion euros (around $1.78 billion), as the travel industry continues to suffer from the coronavirus restrictions.

According to the company, its sales slumped by 80 percent, compared to the same period the previous year, reaching only 1.9 billion euros.

German Lufthansa planes sit parked in a line at the airport in Munich, Germany, Thursday, March 26, 2020

© AP Photo / Matthias Schrader

"We are experiencing a watershed moment in global air traffic. We do not expect demand to return to pre-crisis levels before 2024", Lufthansa chief executive Carsten Spohr announced.

Berlin previously approved a bailout programme for the corporation to stay afloat amid the coronavirus crisis but according to reports Lufthansa will have to give up its prized slots at the Frankfurt and Munich airports to ensure fair competition.