Lufthansa needs to generate more cash, CEO tells employees
August 6 , 2012
The management of Deutsche Lufthansa has told employees in an internal letter that the German carrier must boost its cash flow.
"High passenger numbers and seat load factors unfortunately say nothing about what remains in our coffers at the end of the day. And what's there is still not enough to shoulder the investments we need to keep an edge as premium airline in the future," Chief Executive Christoph Franz said in a letter to employees.
Last week, Lufthansa scaled back plans to expand its passenger fleet in order to protect profits threatened by spiralling fuel prices.
According to the letter, Lufthansa has also put aside $3.7 billion to improve the "product experience" for passengers.