LHA Deutsche Lufthansa AG

   By Sarah Sloat 
 

Deutsche Lufthansa AG said Friday it was considering taking its Airbus A380 fleet out of service temporarily in Frankfurt and Munich as part of deep capacity cuts resulting from the slump in demand.

Earlier Friday, the German airline said it would cut capacity by up to 50% in the coming weeks.

"Due to the exceptional circumstances caused by the spread of Covid-19 and the resulting drastic decline in bookings as well as numerous flight cancellations, Lufthansa Group decided to reduce the flight capacity on offer even more than previously planned," the company said.

The capacity adjustments apply to all Lufthansa's passenger airlines, which include Swiss and Austrian Airlines. The Lufthansa group's fleet of A380s consists of 14 aircraft, it said.

The measure is aimed at cushioning the financial impact of the slump in demand, Lufthansa said, and comes on top of planned savings in personnel, material costs and project budgets. In addition to an immediate hiring freeze, Lufthansa has offered employees the use of voluntary measures in recent weeks, including unpaid leave. Lufthansa is in talks with its operating partners and unions to avoid dismissals, it said.

The airline said it isn't possible at this point to estimate the burden on earnings from current developments.

Write to Sarah Sloat at sarah.sloat@wsj.com

(END) Dow Jones Newswires

March 06, 2020 12:01 ET (17:01 GMT)

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