Union Demands 9.5 Percent More Wages for Ground Staff Lufthansa

Lufthansa Wants to Strengthen Buffers by EUR 3 Billion

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The German airline Lufthansa is working with banks on a plan to raise 3 billion euros in capital.

 

Sources tell Bloomberg news agency that equity strengthening is needed to repay loans previously granted by the German state.

The time and size of the package will depend on market conditions. The capital increase is expected to take place before the summer. A Lufthansa spokesperson declined to comment.

Europe’s largest airline received a financial injection of EUR 9 billion from Germany last year. This happened because the corona crisis ended the continued growth of the aviation sector.

The new financing should generate enough money to repay a 5.5 billion euro stake held by the German state. Until that account is paid, Lufthansa cannot interfere in the market for acquisitions and mergers. Directors’ remuneration has also been capped until then.

In addition to Lufthansa, Swiss, Brussels Airlines, and Austrian Airlines are also part of the airline group. Shareholders approved a possible capital increase of 5.5 billion euros last week.

Lufthansa had previously said it would not use the total amount available. Instead, the company said it would aim for the “smallest possible” increase.

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