Europe's leading global airline is losing $1 million an hour and needs a bailout - CNN
Europe’s leading global airline group held its first virtual annual general meeting on Tuesday, unveiling a €1.2 billion ($1.3 billion) first quarter loss and painting a bleak picture of the outlook for global aviation, which has been brought to a virtual standstill by the coronavirus pandemic.
The 'tsunami' of airline job losses has begun in Europe. US carriers could be next
Lufthansa (DLAKY) declined to answer questions from shareholders regarding details of its bailout discussions, according to Bloomberg. It said last week that the Swiss government had agreed to guarantee 85% of a $1.5 billion loan package for its Swiss carriers. The group also owns airlines in Germany, Austria and Belgium.
German weekly Der Spiegel and Bloomberg reported Friday that Lufthansa is negotiating a €10 billion ($10.8 billion) bailout with Germany that would give the government 25.1% of the company and a seat on its supervisory board.
Lufthansa declined to comment on the reports. But the company said in a letter sent to staff on May 3 and shared with CNN Business that it believes talks “can be brought to a quick conclusion.”
“The support of the German government would be a decisive step for our future viability,” the executive board wrote in the letter. “Competitiveness and investment capability continue to be important prerequisites for this.”
Analysts are worried that government interference could hamper Lufthansa’s ability to quickly execute a planned