According to Luxair CEO Gilles Feith, the airline is facing losses of around €100 million in 2020. Photo: Patricia Pitsch
Luxembourg’s national airline is hit hard by the effects of the health crisis. 262,000 reservations have already been cancelled, and the financial losses for the year are estimated at €100m.
Luxair is no exception to the economic slump, a direct effect of the health crisis on the air transport sector. Like almost every other company in the world, the national carrier is facing unprecedented challenges. Talking to RTL on Saturday, the company’s CEO, Gilles Feith, presented two clear figures: 262,000 reservations have already been cancelled this year, and the estimated losses are €100m. In 2018, Luxair’s turnover was €593m, for a positive operating result of €800,000.
Measures were therefore necessary and were agreed in a tripartite agreement. The company will be reduced by about 600 employees. However, irrespective of the current crisis, the airline also has to face inevitable investments: modernisation of the Cargo Center’s computer, renovation of the hangar, partial replacement of aircraft fleet… Concerning the latter, Gilles Feith did mention that Luxair could potentially abandon Boeing for Airbus and/or Embraer. Luxair will also continue to look for niche markets to serve.
For the airline’s CEO, decreasing the scope of activity would be the worst strategy.
This article was initially published in French on Paperjam.lu and has been translated and edited for Delano.