Lufhansa see revenues drop 80%, no full recovery until 2024

German airline giant Lufthansa said on August 8, 2020 it made a net loss reaching 1.5 billion euros ($1.7 billion) in the second quarter as the coronavirus pandemic slammed the brakes on travel. (AFP)
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Updated 06 August 2020

Lufhansa see revenues drop 80%, no full recovery until 2024

  • Lufthansa said it carried 96% fewer passengers during the April-June quarter and experienced an 80% drop in revenue
  • The company is the recipient of a 9 billion-euro government bailout to enable it to keep flying

FRANKFURT, Germany: German airline group Lufthansa on Thursday reported a net loss of 1.49 billion euros ($1.77 billion) for the second quarter, when the pandemic essentially shut down passenger traffic, and issued a sobering forecast for demand to not reach pre-virus levels before 2024.
“Especially for long-haul routes there will be no quick recovery,” CEO Carsten Spohr said in a statement accompanying the quarterly earnings statement.
Lufthansa said it carried 96% fewer passengers during the April-June quarter and experienced an 80% drop in revenue, to 1.9 billion euros from 9.6 billion euros in the same quarter a year earlier. Most of that revenue came from the company’s cargo and maintenance businesses, not from flying passengers.
The company is the recipient of a 9 billion-euro government bailout to enable it to keep flying and says it will emerge from the pandemic as a smaller airline with 22,000 fewer jobs due to a cost-cutting program.
The company slashed operating expenses during the quarter with the help of government wage support programs for employees put on shorter hours or no hours. It also canceled non-essential expenditures.
The cargo division made a profit of 299 million euros, up from 9 million a year ago.
Lufthansa has started flying short-haul vacation flights but in July its offerings reached only around 20% of last year’s level. It said short and medium haul capacity would increase to 40% in the third quarter and long-haul capacity to 20%.
It forecast an operating loss for the rest of the year and said it expected long-haul routes — normally a key source of earnings — “will continue to be served only to a very limited extent due to ongoing travel restrictions.”


Saudi Arabia signs AI agreements with IBM, Alibaba and Huawei

Updated 7 min 32 sec ago

Saudi Arabia signs AI agreements with IBM, Alibaba and Huawei

  • Deal with Alibaba cloud will 'help Saudi Arabia’s journey to develop world-class smart cities'

RIYADH: The Saudi Data and Artificial Intelligence Authority (SDAIA) signed three agreements with IBM, Alibaba and Huawei on Thursday.

The memorandums of understanding came on the second day of the  Global AI Summit being held in the Kingdom.

The deal with Alibaba Cloud is designed to “empower Saudi cities with intelligence-driven smart city solutions,” Saudi Press Agency reported. 

The partnership will support Saudi Arabia’s journey to develop world-class smart cities.

SDAIA and Alibaba Cloud will work together to develop digital and AI solutions in safety and security, mobility, urban planning, energy, education, health, among others.

“Saudi Arabia’s Vision 2030 has clear goals to transform KSA cities into smart ones by unlocking the value of city data as a national asset to realize Vision 2030 aspirations,” SDAIA president Abdullah bin Sharaf Al-Ghandi, said.

“Our journey to creating smart cities that rank among the smartest in the world is already well underway with Riyadh City. 

This partnership with Alibaba Cloud will support the acceleration of the transformation of our cities, through enabling intelligence-driven technologies and AI techniques that will fuel sustainable economic development and a high quality of life to our citizens.”

Phillip Liu, General Manager of Middle East and Africa, Alibaba Cloud Intelligence, said: “We are proud to bring Alibaba Cloud’s proven cloud and AI products as well as our global experiences and to combine these with the expertise from SDAIA.”