Lufthansa - Restructuring and deleveraging will be a long and painful process

Davy Research
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Lufthansa’s FY2020 adjusted EBIT loss of -€5,451m was broadly in line with Davy -€5,484m and a little ahead of consensus -€5,631m. Operating cash drain in the quarter was -€300m, slightly better than the projected -€350m and continuing into Q1. Lufthansa is prepared to operate 70% of the pre-crisis schedule, presumably for the summer (40-50% for the year); in addition to repaying the government stabilization funds, the goal of its financial strategy is to get to investment grade in the medium term.