GERMANY. Airline services company LSG Group has reported a -50% fall in sales year-on-year to €814 million as a result of the COVID-19 crisis. LSG is parent company of airline retail and technology specialist Retail inMotion, as well as divisions under the LSG SkyChefs, Spiriant and Evertaste brands.
Adjusted EBIT (earnings before interest and taxes) fell to a deficit of €195 million (from €33 million in the previous year).
“The corona crisis has presented us with extreme major challenges that have never been faced before in our company’s history,” said Chief Financial Officer Dr. Kristin Neumann. “Thanks to our solid liquidity position and the measures we implemented on short notice to safeguard that liquidity, we were able to cushion the initial slump in sales and earnings. However, none of us knows how long this crisis will last, and it is obvious that only long-term solutions will help us reduce our costs sustainably and at the same time give the company more flexibility and a future.”
The LSG Group is aiming to reduce its total costs worldwide by at least -30%. This is part of the ‘Levante’ project, which is designed to steer the company through the crisis while continuing to develop its business strategy.
“The aim of the project is to optimise our company in the medium term in terms of the size of its organisation and network, and to adapt it to changing market conditions with fewer flights and lower passenger and service volumes,” explained Chief Executive Officer Erdmann Rauer. “In the long term, we are thus also changing our product range according to the ‘new normality’ and want to actively bring about change in the airline catering industry. We see that our customers are ready for change, and we are ready to support them with our employees.”
