Lufthansa loses hope over summer travel rebound

Lufthansa is losing hope over a summer travel rebound.

The German airline said Thursday (April 29) that it had cut its capacity forecast for the year.

It now expects to fly only about 40% of its pre-crisis capacity, down from earlier guidance of up to 50%.

The group - which also includes Swiss and Austrian Airlines - still expects a 'significant' recovery in the second half of the year.

It says bookings shoot up wherever restrictions are loosened.

But Lufthansa has stepped up warnings to German unions over job cuts.

The carrier says it's ready to used forced dismissals to reduce headcount.

Over the first quarter, sales were down 60% on a year-earlier period only partially hit by lockdowns.

Lufthansa's net loss halved to about 1.2 billion dollars, helped by job cuts and reduced operating costs.

The firm's cargo businesses - a rare bright spot - posted a record quarterly profit.

Lufthansa shares were down over 4% by lunchtime on Thursday.