RTTNews | Oct 20, 2020 09:45AM EDT

09:45 Tuesday, October 20, 2020 (RTTNews.com) - Lufthansa Group reported that its third-quarter preliminary adjusted EBIT was negative 1.262 billion euros, compared to positive 1.297 billion euros in the prior year.

Lufthansa said that the corona crisis impacted its earnings development in the third quarter of 2020. However, losses were reduced compared to the second quarter, due to an expansion of the flight schedule in the summer months of July and August and considerable cost reductions.

Meanwhile, Lufthansa Group said it is in a position to withstand further burdens from the corona pandemic. Demand for air travel is expected to remain low in the coming winter months due to the global evolution of the pandemic and the associated travel restrictions.

The Group's airlines plan to offer a maximum of 25% of the previous year's capacity in the fourth quarter to ensure that flight operations continue to generate a positive cash contribution.

In addition, Lufthansa Group said it is working intensively on restructuring measures in all business segments in order to achieve short and medium-term cost savings and minimize the operating cash outflow.

Lufthansa Group reported that adjusted free cash flow for the third quarter was negative 2.069 billion euros compared to positive 416 million euros in the previous year.

Payments of 2.0 billion euros for corona-related flight cancellations were partly offset in the third quarter by cash inflows from the expansion of flight activities in July and August. The Group also benefited from strict working capital management and the postponement of tax payments, Lufthansa said in a statement.

At the end of September, the Group had liquidity of 10.1 billion euros at its disposal. It included undrawn funds from the 9 billion euros stabilization packages from Germany, Switzerland, Austria and Belgium. Out of those, 6.3 billion euros are still available, the company said.

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