European airlines are preparing for slow market recovery

Created on 26.03.2021 09:10

Three largest European aviation groups recently have presented financial statements for 2020, overturning the air transport industry upside down. The multi-billion dollar losses clearly point to survival challenges for these carriers in 2021, even considering market recovery with vaccination spread, the ATO writes.

The Lufthansa Group, presenting its financial annual results, has submitted a revised plan for its fleet optimization in order to improve  the efficiency within the post-coronavirus reality. For the German group, 2020 was the worst year in its history: the group's net loss had amounted to 6.7 billion euros. Meanwhile, the International Airlines Group (IAG), including Aer Lingus, British Airways, Iberia, Level and Vueling, also stated that in the first months of 2021 about 20% of the carrying capacity was involved in the schedule, reflecting another tightening quarantine measures compared to the IV quarter of last year, when the group's total capacity was amounted to 26%. To cut capital expenditures, IAG has drastically reduced scheduled deliveries of new aircrafts.

Air France - KLM Group had suffered losses in the amount of 7.1 billion euros and all the efforts of the group's management are aimed at recapitalizing. At the moment,  the group is seeking permission for obtaining the approval of the European Commission in getting an additional public assistance.

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