(Bloomberg) — Deutsche Lufthansa AG is preparing for more drastic cutbacks in its global workforce and airline fleet than it previously planned, after a hoped-for recovery of air traffic fizzled out.
Recent rules that forced travelers into quarantine have had a catastrophic effect on bookings, Chief Executive Officer Carsten Spohr told staff at a meeting on Tuesday, according to people in attendance. For October, seat reservations stand at less than 10% of year-ago levels, said the people, who asked not to be named discussing comments that weren’t publicly made.
A surge in European virus cases has forced Europe’s biggest airline to tear up its recovery plan and pare back its ambitions to cope with the deteriorating outlook. Lufthansa, which accepted a 9 billion-euro ($10.7 billion) German bailout in early June, now expects a recovery