Germany plans to reduce its stake in airline Lufthansa. In the coming weeks, 5% of the shares will be put on the market. Berlin acquired a fifth of Lufthansa as part of the multi-billion dollar aid package to guide the group through the corona crisis.
According to the German stability fund WSF, which owns the documents, developments at the airline have been positive recently, which is the reason for phasing out the stake in Lufthansa. However, WSF continues to support Lufthansa as a major shareholder, a statement said.
Lufthansa managed to cut its losses in the past quarter. In addition, the German aviation group recorded a positive cash flow for the first time since the start of the crisis, which means that more money came in than went out. This was partly due to cost savings.
In June, the airline unveiled plans to return to profitability with fewer aircraft and fewer staff than the pre-crisis period. The group expects a further recovery in tourism in the second half of this year. The German company is also counting on better times in terms of business travel.
Europe’s largest airline received a financial injection of 9 billion euros from Germany last year. This happened because the corona crisis put an end to the continued growth of the aviation sector. As long as the state aid has not been repaid, Lufthansa cannot intervene in the market for acquisitions and mergers. Driver’s pay has also been capped until that time.
