MIAMI – Lufthansa (LH) is grounding planes and canceling flights for the months of March and June due to the COVID-19 outbreak that has now spread in Europe, causing a drastic lowering in passenger demand for the industry.
The move is intended to reduce the dire financial consequences brought by the ongoing public health crisis. To get a better picture, just 7,100 domestic and Italy-bound flights the airline has canceled amount to 25% of its capacity.
So far, apart from the above cancelations, LH has already decided to suspend the following frequencies until their respective dates:
|From Germany to Israel||March 28|
|From Germany to Tehran||April 30|
|From Germany to China||April 24|
|From Munich to Hong kong||April 24|
The airline has sourly acknowledged that all of its traffic has been currently affected. And so, adding up all the carrier’s capacity cuts as of now, it has suspended an alarming 50% of its capacity.
To bear the cost of the loss of traffic, in addition to the capacity cuts, the Lufthansa Group announced further cost-cutting measures in the areas of personnel, materials and project budgets.
To make flying matters worse, the airline is set to ground 150 of its 770 aircraft. As the LH is set to publish its financial results on March 19, 2020, it is, like many other airlines, unsure of what the numbers will look like.
Is the worst is yet to come?
The International Air Transport Association (IATA) warned this week that carriers may lose $113 billion in sales this year, almost four times greater than the Association’s estimate of the epidemic’s impact from just two weeks earlier.
As a result, carriers worldwide are cutting back capacity and readjusting flight schedules to grapple with the fallout of the novel virus that has now reached a global scale. Airways will continue to inform of any events the fallout of the epidemic has on the commercial aviation industry.
Article written by Helwing Vilamziar