Lufthansa says losing $1 million per hour as bailout talks enter final stretch

Lufthansa shareholders on Tuesday agreed to not distribute 298 million euros ($323 million) in retained earnings as a dividend for 2019, because the airline enters the ultimate stretch of negotiations for a 10 billion euro bailout.

Lufthansa must be rescued after coronavirus journey bans pressured the German group to floor 700 of its plane, resulting in a 99% drop in passenger numbers and inflicting the group to lose about 1 million euros ($1.1 million) in liquidity reserves per hour.

Some 10,000 shareholders adopted the assembly on-line, representing 33.19% of the share capital, Lufthansa mentioned.

The provider, which is getting ready to restart passenger flights slowly from June, is at present in talks with the German, Austrian, Swiss and Belgian authorities a few roughly 10 billion euro bailout. Chief Executive Carsten Spohr mentioned that he anticipated to clinch a take care of Germany shortly.

“Our focus is on stabilising Lufthansa in its current form and not on acquiring other airlines. We are not planning a takeover at this time,” he mentioned, including that consolidation amongst European airways will decelerate on account of authorities bailouts.

Lufthansa’s rescue deal is anticipated to present Germany a 25.1% stake within the airline in addition to supervisory board illustration, individuals near the matter mentioned.

Separately, Lufthansa is anticipated to obtain about 5 billion euros in non-voting capital in addition to roughly three billion in state-backed loans, they added.

The precise measurement of the rescue deal in addition to the attainable contribution from Switzerland, Austria and Belgium continues to be unclear, the sources mentioned.

Spohr is anticipated to go to Brussels this week, in line with Belgian each day L’Echo. The airline is in search of 290 million euros in monetary support from the Belgian state. In change, Belgium needs ensures on the way forward for Brussels Airlines and the event of the Brussels airport.

Spohr mentioned that regardless of the bailout the German authorities was not involved in taking an energetic function within the firm, after he had earlier warned about attainable state interference.

Klaus Schmidt, head of the council of financial advisers to the federal financial system ministry, mentioned at a ministry briefing on Tuesday, that the federal government mustn’t weigh into discussions, for instance, on whether or not Lufthansa’s Germanwings division must be shuttered.

To scale back its money outflows, Lufthansa — which is taking a 2020 hit of about 1 billion euros from crude oil hedging — mentioned on the assembly that it had requested Airbus and Boeing to postpone plane deliveries.

Lufthansa is sticking to its plan to promote its catering actions, Spohr mentioned, including that additional asset gross sales weren’t deliberate and a possible itemizing of its Lufthansa Technik enterprise would at present solely be attainable at an enormous low cost.