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Lufthansa posts 2.1 billion euro net loss after 'drastic decline' in air travel in the first quarter

Lufthansa airplanes are parked on the tarmac at Frankfurt airport, Germany.Ralph Orlowski | Reuters

Lufthansa reported a significant loss for the first quarter and said restructuring was necessary as its results were "significantly impacted" by the Covid-19 pandemic.

The German airline reported a net loss of 2.1 billion euros ($2.35 billion) for the first three months of the year on Wednesday. This compared to a loss of 342 million euros the year before.

The coronavirus crisis has brought severe economic difficulties for many airlines, including Lufthansa. The company agreed to hand over up to 24 take-off slots to competitors at Frankfurt and Munich airports in exchange for 9 billion euros ($10.05 billion) in support from the German government.

As part of the deal, the German government will get a 20% stake in Lufthansa.

Shares of the airline are down more than 42% year-to-date.

This is a breaking news story and will be updated shortly.

CNBC

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