Brussels Airlines: 57% fewer passengers and €143 million loss
As the summer holidays are in full swing and air transport is taking off, Brussels Airline is at half-mast with an EBIT loss of 143 million euro at mid-2021. Revenues have dropped by 45% compared to the same period last year while the number of passengers transported between January and June fell by 57%.
Mother company Lufthansa, for its part, has announced having managed to cut its losses by half in the second quarter of 2021 and even reaching positive cash flow for the first time since the pandemic.
Ever since Covid-19 hit, the air transport sector has been in dire straits. Planes have been grounded, companies have gone bust, most of them lost money, and employees even lost their jobs. According to big players, this summer will play a key role in their future health. Brussels Airline remains cautious and doesn’t forecast any results for the annual financial year.
-45% in revenues
In a recent press release, Belgian air transport company, Brussels Airlines, paints a bleak picture of these past few months. Compared to last year, especially counting in the pre-Covid period, half-year revenues have dropped by 45% to 138 million euros. Between January and June, the company transported 57% fewer passengers.
“The Covid-19 crisis forced Brussels Airlines, after a good start to the year, to almost completely suspend operations between mid-March and mid-June 2020. Since then, numbers have been significantly lower and have not year recovered the pre-crisis levels”, notes the airline in a press release.
‘Tired and stressed’
Besides the financial aspect, the situation isn’t brighter on the side of employees. Propositions to make working conditions easier have been judged insufficient by unions, noting that the personnel is “tired and stressed”.
That being said, unions have made known that no strikes are in the pipeline. They just call upon Belgium, which helped the company with a 290 million euro envelope, to take responsibility and stop Lufthansa from pulling strings alone.
€756 million loss for Lufthansa
German airline group Lufthansa has managed to cut its losses by half this second quarter of 2021, posting a net profit of -756 million euro compared to -1,5 billion euro in 2020. The airline also confirms the sector’s recovery, albeit a slow one, noting that bookings have doubled for June alone.
Consequently, Lufthansa also reached positive cash flow for the first time since the beginning of the pandemic. For the whole year, the German airline plans to reach 40% of the pre-Covid levels.
On Wednesday, a White House representative informed that the administration plans to reopen the USA’s borders to fully vaccinated passengers. “The reopening of transatlantic flights is only a question of time. It is still very important, as transatlantic flights are the most profitable ones”, noted Carsten Spohr, CEO of Lufthansa.