Lufthansa cuts 4Q capacity outlook on demand worries

German airline Lufthansa has cut its capacity outlook for the final quarter of this year, because the outlook for international air traffic has "significantly worsened" in recent weeks.

The airline now assumes it will operate at between 20-30pc in the fourth quarter, down from its previous assumption of around 50pc. It said that this "no longer seems realistic" given renewed signs of looming travel restrictions and resulting lower booking demand.

Lufthansa also said it would have to cut more than the 22,000 jobs it previously said would go as part of a restructuring programme. It is looking to reduce its aircraft fleet by 150 by 2025 and is removing 18 Airbus from its planning this year.

The collapse in travel demand has led to a wave of capacity cuts in the aviation industry in recent weeks. Low-cost carrier Ryanair last week said that it will reduced it flight capacity by 40pc in October, after the UK removed more countries from its travel corridor list.

By Florence Schmit