Lufthansa is also canceling domestic German flights

The novel corona virus has reached Germany, but experts see no reason to panic. © AFP

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Connections every half hour are affected

After the group companies Lufthansa, Swiss and Austrian Airlines had already suspended their flights to mainland China, the management reacted with the additional cuts to the increased spread of the virus. The Group airlines, which also include Eurowings and Brussels, will suspend part of their planned flights to Italy, Hong Kong and South Korea in March and April. Flights to mainland China will be canceled until April 24, as will connections to the Iranian capital Tehran until April 30.

Up to 23 long-haul aircraft remain on the ground

Depending on how the situation develops, the group could reduce its range of short and medium-haul flights by up to a quarter, it said. In addition, up to 23 long-haul aircraft remained on the ground. Lufthansa has already announced a savings program. The impact on profits is currently not yet predictable, it said.

Stock exchanges react

The news was badly received on the stock exchange. Until early afternoon, Lufthansa shares temporarily declined more than nine percent to EUR 10.70. That was the lowest level since October 2016. With a drop of around 28 percent in eleven trading days, the Lufthansa share is the biggest loser in the virus crisis in the leading German index. Since the beginning of 2020, the paper has lost more than a third of its value. Compared to the record high of early 2018, it is almost two thirds.

The spread of the corona virus unsettles customers and management. After the group companies Lufthansa, Swiss and Austrian Airlines had previously suspended their flights to mainland China, the board around Lufthansa boss Carsten Spohr tried to prevent red numbers by using half-empty planes.

World Aviation Association: Passengers let tickets expire

According to the World Aviation Association IATA, many passengers are expiring tickets for fear of the coronavirus epidemic. Many airlines reported that around 50 percent of the passengers never showed up. A major scheduled airline is experiencing a total slump in bookings to Italy. The IATA now wants to ensure that certain rules are adjusted in view of the extraordinary circumstances. An airline threatens to lose its take-off and landing rights if it does not use it at least 80 percent.

The airlines of the Lufthansa Group, which also include Eurowings and Brussels, are now suspending part of their planned flights to Italy, Hong Kong and South Korea in March and April. If possible, Lufthansa wants to rebook affected customers on long-haul routes to other connections.

The cuts on the routes to Italy vary depending on the airline. Eurowings only cuts the flight program to Venice, Bologna and Milan until March 8th. Swiss and Austrian are already anticipating a reduction in their offerings until the end of April, with the core Lufthansa brand so far only mentioning March. Destinations in northern Italy, where the virus first broke out, are particularly affected. However, Rome and Naples are also affected by the flight cancellations.

Lufthansa announces austerity program

The Lufthansa Group had already announced on Friday evening that the flight program could possibly be significantly reduced due to the virus epidemic and the development of demand. In extreme cases, this could reduce the flight offer on short and medium-haul routes by a quarter. Due to the reduction in long-haul flights, according to the information, 13 large-capacity jets were recently on the ground. This number could now rise to 23.

Lufthansa has already announced a savings program. Employees were asked to voluntarily take unpaid leave. New hires are under scrutiny and the airline is examining the possibility of short-time work in various areas. Management also sets the red pencil when it comes to material costs.