(UTV |FRANKFURT ) -Lufthansa is closing its Germanwings budget airline as part of a wider cutback driven by a decline in travel due to the coronavirus.
The German airline said it would de-commission more than 40 aircraft, warning that it does not expect demand to return for “years”.
It said it would also reduce fleets in its other businesses, which include Austrian Airlines, Swiss and Eurowings.
Lufthansa’s moves could be a hint of more drastic steps to come elsewhere.
“You can’t understate the disaster that’s unfolding right now in the world’s airline industry. There’s no sugar coating it,” said Richard Aboulafia, aviation analyst at Teal Group.
