Lufthansa Group to take significant hit to liquidity reserves 'in the coming weeks'

Lufthansa Group stated (23-Apr-2020) it anticipates a "significant decline" in liquidity reserves "in the coming weeks" due to the coronavirus outbreak. The group added it does not expect to be able to cover the resulting capital requirements with further borrowings on the market and will have to rely on government aid of its home countries and their relevant financing instruments to sustainably secure solvency in the near future. Lufthansa Group stated it forecasts a "considerably higher" operating loss in 2Q2020 compared to 1Q2020 due to the inability to resume operations beyond the current repatriation schedule. The group concluded it is in "intensive negotiations" with governments on various state aid measures and is "confident" that talks will lead to a successful conclusion. [more - original PR]