RTTNews | Sep 21, 2020 11:50AM EDT

11:50 Monday, September 21, 2020 (RTTNews.com) - German airline Deutsche Lufthansa AG (DLAKF, DLAKY) Monday announced further cut to its fleet size and workforce as the coronavirus crisis continues to impact the airline industry. The company will take a 1.1 billion euro or $1.3 billion impairment on the value of its aircraft.

Lufthansa said it it now expects capacity for the passenger airlines to be in range of 20 and 30 percent, down from the previous assumption of an average level of 50 percent.

As a results, the company announced a group-wide capacity reduction of 150 aircraft by the middle of this decade. The fleet reduction decision will result in a further impairment of up to 1.1 billion euros. The amount is expected to be accounted for in the third quarter of the current year.

The company plans a streamlined management structure with a 20 percent reduction of management positions to be implemented in the first quarter of 2021.

Lufthansa aims to reduce its monthly cash flow by around 100 million euros per month to around 400 million.

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