Lufthansa has warned that it will be forced to cut more jobs and dispose of a further 50 jets, due to a significantly lower recovery in air traffic as a brief boost in demand during the holiday season fades away.
The german carrier, which secured a 9bn bailout from berlin in june, said it expected to operate between 20 per cent and 30 per cent of its capacity in the last three months of the year compared with pre-crisis levels, down from an earlier forecast of 50 per cent.
The companys shares fell 10 per cent to 7.75 by late monday afternoon in frankfurt to their lowest level in more than a month.
The group, which includes brands such as austrian, brussels, swiss and eurowings, had already announced that it will be faced with at least 22,000 excess staff as a result of covid-19, and cautioned that those numbers would need to be further adjusted.
Lufthansa said 20 per cent of management positions will be axed next year, although it refused to specify how many more jobs would be at risk in total.
Approximately 87,000 of the groups 130,000 employees are still enrolled in germanys kurzarbeit furlough scheme alone.
Mira neumaier, an official at the german services union verdi, one of several unions representing lufthansa staff, criticised the announcement of further redundancies. the company will not be rescued by job cuts alone, she said, adding that forward-looking concepts are still missing from the airlines senior management.
Lufthansa, which unlike most of its competitors owned about 760 jets when the pandemic hit, said it would permanently decommission a total of 150 planes, and confirmed that all 14 of its airbus a380s would be put in long-term storage, along with 10 a340-600s.
Those decisions would lead to a 1.1bn writedown in its third-quarter results, the company said.
Lufthansa, which said it was burning through 1m of cash an hour at the height of the crisis, is now paying out that amount roughly every 90 minutes, as the main source of its revenues long-haul business travel remains at historic lows.
On monday, the airlines board renewed its call for more testing capacity at airports to restore confidence in air travel.
Consistent testing is possible, increases safety for travellers and is a better alternative than changing inconsistent entry and quarantine regulations, it said.
Earlier this year, lufthansa partnered with german company centogene to offer coronavirus pcr tests at its frankfurt hub, testing more than 150,000 passengers over the course of the summer.