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  4. Lufthansa is losing $1 million an hour and projections for a recovery are grim. Take a look at the history of the iconic German airline.

Lufthansa is losing $1 million an hour and projections for a recovery are grim. Take a look at the history of the iconic German airline.

Lufthansa is losing $1 million an hour and projections for a recovery are grim. Take a look at the history of the iconic German airline.
Two Lufthansa Airbus A320neo aircraft.Reuters
  • Germany's Lufthansa has been hit particularly hard by the pandemic, reporting losses of around $1 million per hour.
  • The 67-year-old flag carrier relaunched in 1953 following the dissolution of its initial iteration after World War II.
  • During its tenure in the world's skies, Lufthansa has established itself as one of the world's leading premium brands.
  • Visit Business Insider's homepage for more stories.

Germany's largest airline is in trouble.

Like most global carriers, Lufthansa has found itself bleeding money as its planes sit idle at airports across the country. The novel coronavirus has effectively crippled its core business which, as a flag carrier, including bringing people to and from Germany, a country under lockdown with its air borders largely closed.

Demand for Lufthansa's secondary focus, using its hub airports in Frankfurt and Munich as intercontinental connecting points, has also evaporated as few travelers venture outside their home countries for fear of contracting the virus or being stranded abroad.

Though initially believed to be financially sound in the event of a downturn, the unique circumstances created by the pandemic has been particularly detrimental to larger airlines, Lufthansa included. Business Insider Deutschland recently reported that the airline is losing $1 million per hour as its primary revenue earners are grounded with little ability to generate any income besides flying cargo.

The past few months have seen the airline operate some flights, typically flying empty to the furthest outposts of the world such as Christchurch, New Zealand, and bringing stranded Germans back home, as well freight operations on passenger aircraft. But the airline may now be dependent on its government for a lifeline.

Take a look back at the famed German airline.

Read the original article on Business Insider

Projections are currently grim for airlines the size of Lufthansa. Rival airline consortium International Airlines Group has estimated a slow return in demand for its intercontinental airlines and Lufthansa is likely facing a similar future.

Projections are currently grim for airlines the size of Lufthansa. Rival airline consortium International Airlines Group has estimated a slow return in demand for its intercontinental airlines and Lufthansa is likely facing a similar future.
Lufthansa CEO Carsten Spohr.      Reuters

With losses estimated at $1 million per hour, the airline turned to the German government for a bailout, though the airline is skeptical of accepting an offer that involves the state taking equity.

With losses estimated at $1 million per hour, the airline turned to the German government for a bailout, though the airline is skeptical of accepting an offer that involves the state taking equity.
Grounded Lufthansa aircraft lining an airport runway.      Kai Pfaffenbach/Reuters

The sudden loss of demand and countless travel restrictions have tied the hands of its main operation and that of its subsidiaries, causing chaos for the airline and parent company Lufthansa Group.

The sudden loss of demand and countless travel restrictions have tied the hands of its main operation and that of its subsidiaries, causing chaos for the airline and parent company Lufthansa Group.
An office building of German airline Lufthansa in Frankfurt.      Reuters

The brand quickly recovered and as one of Europe's powerhouse airlines, Lufthansa remains a recognized leader in travel but the pandemic has not been kind to its operations.

The brand quickly recovered and as one of Europe
A Lufthansa Airbus A380 aircraft lands at Frankfurt Airport in Germany.      Reuters

The new branding came after a dark moment for the airline in 2015 where a pilot from Lufthansa subsidiary Germanwings intentionally crashed an airliner into a mountain after taking control of the aircraft while his counterpart was in the lavatory.

The new branding came after a dark moment for the airline in 2015 where a pilot from Lufthansa subsidiary Germanwings intentionally crashed an airliner into a mountain after taking control of the aircraft while his counterpart was in the lavatory.
A Germanwings Airbus A319 aircraft.      Monika Skolimowska/picture alliance via Getty Images

Lufthansa unveiled a new branding scheme in 2018, designed to give the carrier a more refined and premium look. The color yellow was removed from the aircraft but was maintained in other signage.

Lufthansa unveiled a new branding scheme in 2018, designed to give the carrier a more refined and premium look. The color yellow was removed from the aircraft but was maintained in other signage.
A Lufthansa Boeing 747-8i in the airline's new branding.      Markus Schmal / Shutterstock.com

Lufthansa is also one of the few carriers to operate the Airbus A380.

Lufthansa is also one of the few carriers to operate the Airbus A380.
Thomas Pallini/Business Insider

And the upcoming Boeing 777X.

And the upcoming Boeing 777X.
A taxing Boeing 777X in Seattle, Washington.      JASON REDMOND/AFP/Getty

Boeing 747-8i,

Boeing 747-8i,
A Lufthansa Boeing 747-8i.      Larry Downing/Reuters

Airbus A350-900 XWB,

Airbus A350-900 XWB,
A Lufthansa Airbus A350-900 XWB.      Kenken_spotter / Shutterstock.com

To this day, Lufthansa continues to invest in new innovations from Airbus and Boeing. Among the recent purchases include the Airbus A320neo,

To this day, Lufthansa continues to invest in new innovations from Airbus and Boeing. Among the recent purchases include the Airbus A320neo,
A Lufthansa Airbus A320neo.      Nicolas Economou/NurPhoto/Getty

Lufthansa was also a founding member of the Star Alliance, one of the world's first modern-day airline alliances.

Lufthansa was also a founding member of the Star Alliance, one of the world
A Star Alliance-themed Airbus A340 aircraft of Lufthansa.      AP Photo/Hans Edinger

And Lufthansa Technik, a maintenance, repair, and overhaul company.

And Lufthansa Technik, a maintenance, repair, and overhaul company.
A Lufthansa Technik maintenance building.      smolkapressepool/ullstein bild/Getty

LSG Sky Chefs, an air catering service...

LSG Sky Chefs, an air catering service...
Meals being prepared by LSG Sky Chefs.      Reuters

Eurowings, a low-cost airline designed to compete against Ryanair, EasyJet, and Norwegian...

Eurowings, a low-cost airline designed to compete against Ryanair, EasyJet, and Norwegian...
A Eurowings Airbus A320 aircraft.      INA FASSBENDER/AFP/Getty

Sun Express, a joint venture with Turkish Airlines...

Sun Express, a joint venture with Turkish Airlines...
A Sun Express Boeing 737 aircraft.      Tobias Arhelger / Shutterstock.com

Subsidiaries of the group also include Lufthansa Cargo, a dedicated freight unit flying a fleet of cargo aircraft...

Subsidiaries of the group also include Lufthansa Cargo, a dedicated freight unit flying a fleet of cargo aircraft...
A Lufthansa Cargo MD-11 aircraft.      Ilya Naymushin/Reuters

And Air Dolomiti.

And Air Dolomiti.
An Air Dolomiti Embraer 190.      Fabrizio Gandolfo/SOPA Images/LightRocket/Getty

Brussels Airlines...

Brussels Airlines...
Brussels Airlines Airbus A320 aircraft.      Francois Lenoir/Reuters

Austrian Airlines...

Austrian Airlines...
Austrian Airlines Airbus A320 family aircraft.      LEONHARD FOEGER/Reuters

Lufthansa was fully privatized in 1997 and since then, the Lufthansa Group has acquired multiple airlines from neighboring countries including Swiss International Air Lines...

Lufthansa was fully privatized in 1997 and since then, the Lufthansa Group has acquired multiple airlines from neighboring countries including Swiss International Air Lines...
A Swiss International Air Lines Airbus A330.      FABRICE COFFRINI/AFP/Getty

Over the years, Lufthansa has established itself as a major international player and connected the newly reunited Germany with the world following the collapse of the Soviet Union in the 1990s.

Over the years, Lufthansa has established itself as a major international player and connected the newly reunited Germany with the world following the collapse of the Soviet Union in the 1990s.
A Lufthansa sign is seen in front of the airport terminal at Cairo International Airport in Egypt.      Reuters

And Airbus A300.

And Airbus A300.
A Lufthansa Airbus A300.      Keystone-France/Gamma-Keystone/Getty

McDonnell Douglas DC-10,

McDonnell Douglas DC-10,
A Lufthansa aircraft.      Patrick Becker/ullstein bild/Getty

Lufthansa continued the trend with the Boeing 747,

Lufthansa continued the trend with the Boeing 747,
A Lufthansa Boeing 747 aircraft.      Frank Kleefeldt/picture alliance/Getty

The airline also placed the first order an up-and-comer, the Boeing 737, becoming the launch customer with its initial order for 21 planes.

The airline also placed the first order an up-and-comer, the Boeing 737, becoming the launch customer with its initial order for 21 planes.
A Lufthansa Boeing 737.      Lufthansa

The new plane cut down travel times significantly and opened up new routes for Lufthansa.

The new plane cut down travel times significantly and opened up new routes for Lufthansa.
A Lufthansa Boeing 707.      bonoc / Shutterstock.com

Lufthansa entered the jet age in 1960 with the Boeing 707, a four-engine jet popular with many of the world's global airlines at the time.

Lufthansa entered the jet age in 1960 with the Boeing 707, a four-engine jet popular with many of the world
A Lufthansa Boeing 707.      ullstein bild/ullstein bild/Getty

The symbol of Lufthansa's first class, a red rose, was implemented in 1958 and remains today with a rose at every seat in the cabin.

The symbol of Lufthansa
Lufthansa First Class.      picture alliance / Contributor / Getty Images

And even enjoy a bath, complete with Lufthansa's famous first-class rubber ducks, which have become a collector's item.

And even enjoy a bath, complete with Lufthansa
Lufthansa's First Class Terminal.      Thomas Pallini/Business Insider

Take a rest in a private bedroom,

Take a rest in a private bedroom,
Lufthansa's First Class Terminal.      Thomas Pallini/Business Insider

Have a drink at the bar,

Have a drink at the bar,
Lufthansa's First Class Terminal.      Thomas Pallini/Business Insider

Before boarding or in-between flights, travelers here can enjoy a meal,

Before boarding or in-between flights, travelers here can enjoy a meal,
Lufthansa's First Class Terminal.      Thomas Pallini/Business Insider

Separate from the main concourse, the terminal is complete with its own check-in area, security checkpoint, and passport control. Passengers are shuttled directly to their planes via a private car.

Separate from the main concourse, the terminal is complete with its own check-in area, security checkpoint, and passport control. Passengers are shuttled directly to their planes via a private car.
Lufthansa's First Class Terminal.      Thomas Pallini/Business Insider

While most have abandoned the ultra-luxurious cabin, Lufthansa doubled down and even has a dedicated First Class Terminal for premium cabin passengers at its Frankfurt hub.

While most have abandoned the ultra-luxurious cabin, Lufthansa doubled down and even has a dedicated First Class Terminal for premium cabin passengers at its Frankfurt hub.
Lufthansa's First Class Terminal.      Thomas Pallini/Business Insider

The focus on luxury can even be seen today as Lufthansa is one of the few airlines to still offer a true first-class cabin on its long-haul aircraft.

The focus on luxury can even be seen today as Lufthansa is one of the few airlines to still offer a true first-class cabin on its long-haul aircraft.
Lufthansa First Class.      picture alliance / Contributor / Getty Images

Lufthansa was even the first airline to offer draft beer on its flights and still offers a special Oktoberfest-themed catering menu to this day.

Lufthansa was even the first airline to offer draft beer on its flights and still offers a special Oktoberfest-themed catering menu to this day.
Draft beer on board a Lufthansa flight.      Georg Göbel/picture alliance/Getty

Flying then was a luxurious experience complete with multi-course meals, wine pairings, and seemingly unlimited champagne to ease passengers through the journey.

Flying then was a luxurious experience complete with multi-course meals, wine pairings, and seemingly unlimited champagne to ease passengers through the journey.
A Lufthansa flight attendant preparing an aircraft.      ullstein bild/Getty

This time of growth for Lufthansa also saw a focus on refining its high-quality service.

This time of growth for Lufthansa also saw a focus on refining its high-quality service.
The drink service on board a Lufthansa flight.      ullstein bild/ullstein bild/Getty

The Frankfurt-New York route, Lufthansa's flagship to this day, was performed by the Constellation and could be flown in under 12 hours. Today, the route is flown by the Boeing 747-8i, Airbus A340-600, or Airbus A380.

The Frankfurt-New York route, Lufthansa
A Lufthansa Lockheed L-1049 Constellation.      Bettmann / Contributor/Getty

Once a domestic network was established, intra-European operations grew to nearby countries, and eventually, overseas operations were launched.

Once a domestic network was established, intra-European operations grew to nearby countries, and eventually, overseas operations were launched.
A Lufthansa Lockheed L-1049 Constellation.      Kurt Rohwedder / picture alliance via Getty

And the Convair 340.

And the Convair 340.
A Lufthansa Convair 340.      ullstein bild/ullstein bild/Getty

Lockheed L-1049 Constellation,

Lockheed L-1049 Constellation,
A Lufthansa Lockheed L-1049 Constellation.      Keystone/Getty

The new Lufthansa would instead use Western aircraft from Lockheed, Convair, and Douglas in its early days. Among those in the early Lufthansa fleet included the Douglas DC-3,

The new Lufthansa would instead use Western aircraft from Lockheed, Convair, and Douglas in its early days. Among those in the early Lufthansa fleet included the Douglas DC-3,
A Douglas DC-3 similar to the one used by Lufthansa.      Dino Ramic / Shutterstock.com

While the initially state-owned carrier had once used German aircraft in its fleet, including those from Junkers, the war had put them out of commission.

While the initially state-owned carrier had once used German aircraft in its fleet, including those from Junkers, the war had put them out of commission.
A Junkers Ju-52 airplane similar to the one used by Lufthansa.      Reuters

Lufthansa then began growing its domestic route network that centered around Frankfurt, an approximate mid-point for the country, which remains the airline's largest hub today.

Lufthansa then began growing its domestic route network that centered around Frankfurt, an approximate mid-point for the country, which remains the airline
Lufthansa's base at Frankfurt Airport.      ullstein bild/ullstein bild/Getty

The new airline was based in Cologne, where the present-day Lufthansa Group remains today. Hamburg would be a maintenance base for Lufthansa.

The new airline was based in Cologne, where the present-day Lufthansa Group remains today. Hamburg would be a maintenance base for Lufthansa.
Lufthansa's initial headquarters in Cologne, Germany.      Nitschmann/ullstein bild/Getty

The first flights to restore the divided nation's flag carrier came in on April 1, 1955, with the first two flights departing from Hamburg and Munich, the latter becoming a hub for Lufthansa.

The first flights to restore the divided nation
The inaugural flight of the new Lufthansa.      ullstein bild/ullstein bild/Getty

After purchasing the former company's crane trademark and adopting its blue and yellow colors in 1954, Luftag began going by Lufthansa.

After purchasing the former company
Lufthansa's iconic crane logo.      OKER/Hady Khandani/ullstein bild/Getty

The first iteration of the company dates back to 1926 but that was shuttered by the Allied Powers after taking control of West Germany. Like most, the first Lufthansa arose out of a need to quickly connect cities for the transport of mail and people.

The first iteration of the company dates back to 1926 but that was shuttered by the Allied Powers after taking control of West Germany. Like most, the first Lufthansa arose out of a need to quickly connect cities for the transport of mail and people.
A first iteration Lufthansa aircraft.      Alfred Eisenstaedt/The LIFE Picture Collection/Getty

Lufthansa in its current form was founded in 1953 as Aktiengesellschaft für Luftverkehrsbedarf, roughly translated to "public limited company for aviation needs," also known as Luftag.

Lufthansa in its current form was founded in 1953 as Aktiengesellschaft für Luftverkehrsbedarf, roughly translated to "public limited company for aviation needs," also known as Luftag.
Lufthansa's iconic crane logo.      Reuters

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