Financial Data and Key Metrics Changes - The Network Airlines capacity offered was down 96% in Q2 and 61% year-to-date, with adjusted EBIT amounting to negative €1.5 billion in Q2 and negative €2.4 billion in the first half [11][12] - The group's adjusted EBIT declined to negative €1.7 billion in Q2 and negative €2.9 billion in the first half, with adjustments totaling €569 million [18][21] - The net loss for the group amounted to €3.6 billion in the first half of the year [21][30] Business Line Data and Key Metrics Changes - Eurowings experienced a similar capacity and cost reduction, with adjusted EBIT of negative €183 million in Q2 and negative €358 million in the first half [12] - Lufthansa Cargo recorded an adjusted EBIT of €299 million, a new record level, due to higher yields as a result of reduced airfreight capacity [14] - Lufthansa Technik faced an operating loss of €122 million in the first half, primarily due to reduced demand for aircraft maintenance and write-downs of receivables [16][17] Market Data and Key Metrics Changes - The average monthly cash burn for the group was around €550 million in Q2, lower than expected due to better performance in non-airline businesses [13] - The group's liquidity amounted to €2.8 billion at the end of June, with total available liquidity reaching €11.8 billion after a €9 billion stabilization package [29][30] Company Strategy and Development Direction - The company is implementing a comprehensive restructuring program called ReNew, aiming to create a leaner and more efficient organization [10][32] - The fleet is expected to be permanently reduced by 100 aircraft, with plans to modernize the fleet and improve environmental footprint [25][33] - The company is focusing on restoring customer confidence and satisfaction, particularly regarding ticket refunds and hygiene measures [36][38] Management Comments on Operating Environment and Future Outlook - The management expressed that a return to pre-corona pandemic levels in aviation is not expected before 2024, emphasizing the need for the industry to adapt to a new normal [8][9] - The company anticipates substantial adjusted EBIT losses in the second half of 2020, despite expecting to reach about 50% of last year's capacity by year-end [41][42] Other Important Information - The company has reduced its capital expenditures to €1.3 billion for both 2020 and 2021, focusing on preserving cash [22][25] - Pension provisions increased by 11% to €7.4 billion due to negative performance of plan assets [28] Q&A Session Summary Question: What are the expectations regarding U.S. travel restrictions and aircraft parking plans? - Management indicated that the outlook for U.S. travel restrictions is uncertain, and the plans to park 300 aircraft in 2021 and 200 in 2022 remain, though they may be adjusted [45][46] Question: How does the company view its net debt position and potential asset sales? - Management stated that they are not forced into fire sales and are exploring options for Lufthansa Technik, including a minority IPO or strategic partnerships [50][53] Question: What is the outlook for business travel and cash flow in 2021? - Management expects business travel to recover slower than leisure travel, with cash flow turning positive in parts of 2021 but not for the entire year [56][100] Question: Can you elaborate on the labor situation and restructuring costs? - Management confirmed an agreement with cabin crew but indicated challenges with cockpit negotiations, leading to potential involuntary layoffs [64][66] Question: How is the company managing working capital and refunds? - Management highlighted successful collection of receivables and the need to process refunds, with a significant amount expected to be paid out in the near future [80][94]

Financial Performance & Impact of COVID-19 - Q2 2020 passenger numbers decreased by 99%[4], reflecting the near-complete standstill of business for Network Airlines[5] - Network Airlines experienced a 95.5% decrease in ASK (Available Seat Kilometers) and a 34.2 percentage points decrease in SLF (Seat Load Factor)[5] - Eurowings saw a 95% reduction in ASK and a 77 percentage points decrease in SLF during Q2 2020[9] - Adjusted EBIT declined by 90% in the first half of the year for Eurowings[10] - Lufthansa Group revenues decreased by 80.2% in Q2 2020 to EUR 1.894 billion[44] - The Group reported a net loss of EUR 1.493 billion for Q2 2020 and EUR 3.617 billion for the first 6 months[44] Cost Reduction & Cash Management - Airline fixed cash costs were reduced by 34% through measures like short-time work and project cancellations[11] - The Group's average monthly operating cash burn was approximately EUR 550 million in Q2 2020[11] - Gross investments decreased by 53%, with investments expected to be around EUR 1.3 billion in 2020 and a similar level in 2021[18] Restructuring & Future Outlook - The company aims to restore half of its capacity by year-end[37] - The company is targeting a 15% productivity increase to reach 2019 ASK levels by 2023[32] - The company plans to reduce its fleet by 100 aircraft and restructure its corporate headquarters[32]