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Airline industry may not survive without state aid: Lufthansa

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Lufthansa reduced passenger flights by 95%, grounding 700 planes and held talks with the German government on providing liquidity. YahooFinance

BERLIN - Lufthansa said that the airline industry may not survive without state aid if the coronavirus epidemic lasts for a long time, as it throws everything at bringing home stranded travelers and keeping industrial supply chains open.

"The spread of the coronavirus has placed the entire global economy and our company as well in an unprecedented state of emergency," CEO Carsten Spohr said in a statement."At present, no one can foresee the consequences." Lufthansa has already held talks with the German government on providing liquidity, including through special loans from state development bank KfW.

Lufthansa is also discontinuing long-haul flights from Munich and for now will only offer long-haul flights from Frankfurt, it said, announcing a reduction of passenger flights by 95% overall.

 

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