Lufthansa(US:DLAKY)2020-09-25 17:59Financial Performance & Impact of COVID-19 - In the first half of 2020, passenger numbers decreased by 99% due to grounding, followed by a gradual capacity expansion, with ASK (Available Seat Kilometers) down 97% in April and May [10, 11, 12, 13] - Network Airlines experienced an almost complete standstill in Q2, with ASK down 95.5% and a significant decline in passenger load factor (SLF) of 34.2 percentage points [15] - Eurowings' operating profit declined significantly, with Adjusted EBIT down 90% in the first half of the year [19] - The company's fixed cash cost reduction limited monthly cash burn to approximately EUR 550 million [20] - Aircraft impairments related to 65 planes and goodwill impairments led to a net income loss of EUR 3617 million in 6M 2020 [25] Financial Stabilization Package & Liquidity - A stabilization package was agreed with the German Economic Stabilization Fund (ESF) to ensure the company's viability [41] - The stabilization package includes EUR 9 billion in syndicated KfW loans and EUR 1.4 billion in state-guaranteed loans [38, 47] - The company had approximately EUR 11.8 billion in total available liquidity as of June 30, 2020 [38] - The ESF received a 20% direct share issuance in the company at EUR 2.56 per share [47] Restructuring & Outlook - The company aims for a permanent, group-wide capacity reduction of 150 aircraft [70] - The company is targeting a reduction in monthly cash burn to an average of EUR 400 million in winter 2020/21 [70, 72] - The company is targeting a 15% productivity increase by 2023 [63]