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Lufthansa pays back German bailout early – but job cuts still stand

The aviation giant has paid back a German government bailout it says saved 100,000 jobs at the height of the first Covid wave in 2020. But 3,000 more job cuts are still planned.

A Lufthansa plane taking off.
Photo: picture alliance/dpa | Henning Kaiser

Lufthansa said on Friday that it has finished repaying a government bailout worth nine billion euros that saved it from bankruptcy at the height of pandemic travel curbs.

The company says the repayment also came “much earlier than planned,” thanks to cost-cutting measures and rising travel demand after countries eased their coronavirus restrictions.

By October 2023, the German government will sell the stake it took in Lufthansa as part of its rescue deal by October 2023, which sits at about 14 percent.

Lufthansa CEO Carsten Spohr thanked the Merkel government and German taxpayers for helping the company through “the most serious financial crisis in our company’s history,” saying over 100,000 jobs were saved.

The government agreed last June to keep Lufthansa flying with credit line, but the group ended up using only around 3.8 billion euros.

Finance Minister Olaf Scholz, poised to replace Merkel as chancellor, welcomed the early repayment and said the government was likely to make a profit with the sale of its Lufthansa stock.

“Clever politics pays off,” he said.

The group – which also includes Swiss, Austrian and Brussels Airlines – is in the midst of a major job-cutting programme which has seen over 30,000 positions shed since the start of the pandemic, out of 140,000 jobs globally.

The company still plans to axe 3,000 more jobs, it said earlier this month.

Lufthansa posted an operating profit last quarter for the first time since the beginning of the pandemic.

READ ALSO: Germany’s Lufthansa says 30,000 jobs at risk over pandemic

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TRAVEL NEWS

Who benefits from Germany’s €9 public transport ticket offer?

With Germany set to roll out the €9 monthly transport ticket soon, we looked at how it could benefit you (or not) - whether you're a car owner, tourist or a day tripper.

Who benefits from Germany's €9 public transport ticket offer?

For just €9 a month, passengers will be able to travel by bus, train and tram on local and regional transport throughout Germany over summer.

The ticket, which is in place for three months from June, is an unprecedented attempt to relieve German residents financially amid spiralling inflation, and to convince car owners to switch to more climate-friendly choices.

This Thursday, the Bundestag (German federal parliament) will make a final decision on the financing aspect to it, and on Friday it will go to the Bundesrat, which represents the 16 states.

READ ALSO: German states threaten to block €9 ticket

Supporters see a great opportunity for more climate-friendly transport, while critics fear a flash in the pan and warn that overcrowded buses and trains are more likely to scare off potential new users. Of course, people with less disposable income will be helped most by this offer. But which other groups will actually benefit from the €9 ticket?

Long-term public transport customers (ÖPNV-Stammkunden)

If you have a subscription – known as an Abo in Germany – for local transport with a monthly or annual ticket, the ticket is a huge boost. That’s because you will only be charged €9 for the months of June, July and August or you’ll receive a refund or credit note. Many transport associations even hope to gain permanent subscription customers with the the lure of three low-cost months.

READ ALSO: How to get a hold of the €9 ticket in Berlin

Car commuters (Auto-Pendler)

In a survey by Germany’s KfW, three quarters of households that use a car said they would consider switching regularly to buses and trains. So those who are well served by public transport, and who have suitable bus and rail connections to work, may well decide to make the switch because of the cheap offer. This will especially benefit people in large and medium-sized towns. 

If this is you, you’ll definitely save cash by leaving your car at home and taking public transport. The €9 monthly ticket costs less than 50 cents per working day. You won’t get back and forth by car to your destination that cheaply, even if the cut on fuel tax comes as planned.

READ ALSO: How many people will use the €9 ticket?

People driving to and from Cologne.

People driving to and from Cologne. Photo: picture alliance/dpa | Henning Kaiser

Day trippers (Ausflügler)

For many day trips and weekends away, and even for some longer holidays in Germany, it can be worth buying a car. But the €9 ticket does hold the promise of offering excursions throughout the country, as long as you use regional trains since long-distance trains – like the high speed ICE – are not included. 

The Local has even gathered some of the best trips possible with the ticket, and tourism is expected to see a big boost. However, at the start and end of long weekends, such as the upcoming Whitsun (June 5th and 6th) and Corpus Christi (June 16th) in some states, the passenger association Pro Bahn expects chaos on trains heading for the coast and mountains. So perhaps choose your times to travel wisely. 

READ ALSO: How to explore Germany by train with the €9 ticket

Residents in villages and small towns (Dorfbewohner)

As some Local readers have pointed out, the low-cost ticket for public transport is not so much use if buses – or even trains – rarely stop at the place you live. This is the case in many villages across Germany. According to calculations by the railway subsidiary Loki, many rural stops don’t even have an hourly service. 

Drivers can save on fuel and parking fees with a €9 ticket, but you need the transport connections to be able to benefit from it. Otherwise you’ll have to shell out more on taxis on top of the public transport cost. 

Cyclists (Radfahrer)

First thing first, the €9 ticket does not include a bike ticket, so you’ll have to buy one if you want to board a train with your bicycle. However, even if you buy a ticket for your bike to carry alongside your €9 ticket, the quality of your trip will very much depend on the day and time of travel, as well as the route you’re going on.

It often gets cramped on trains for passengers with bicycles, plus the number of bike parking spaces is limited. If it gets too crowded, train staff can decide not to let any more people with bikes on – even if you already have a ticket.

Trains are expected to be very busy during summer because of the low-cost ticket offer. Some operators are asking people not to take bikes on board. Berlin and Brandenburg operator VBB, for instance, urged all passengers to refrain from taking bikes with them during the campaign period and recommends travelling outside of rush hours. 

A cyclist enjoys a break in Ingelheim, Rhineland-Palatinate.

A cyclist enjoys a break in Ingelheim, Rhineland-Palatinate. Photo: picture alliance/dpa | Arne Dedert

Tourists (Touristen)

A group that will definitely benefit form this ticket is people visiting Germany. The ticket costs €9 per calendar month (so €27 in total). But a single day ticket in Munich costs €8.20 normally (and even more depending on the zone). In Berlin, a single day ticket costs €8.80. So even if you’re staying in Germany for two days, if you plan to be on public transport, you’ll get a good deal. 

READ ALSO: What tourists to Germany need to know about reduced-price public transport

Families (Familien)

According to Deutsche Bahn, 6-to 14-year-olds need their own €9 ticket or another ticket; as free transport is excluded from the cheaper transport offer.

Children under six do, however, generally travel free of charge. If you have a lot of children and only want to make a one-off trip, you may be better off with a normal ticket; it includes free travel for children up to the age of 14. For this one, it’s best to check on the local public transport provider’s options before you commit to the €9 ticket. 

Long-distance travellers and commuters (Fernreisende und Fernpendler)

As we mentioned above, the €9 ticket is not valid for long-distance travel, whether on ICE, Intercity and Eurocity, or the night trains of different providers, or on Flixtrain or Flixbus.

The DB long-distance ticket also includes the so-called City Ticket in 130 German cities: free travel to the station and on to the destination by public transport. So if you have this ticket, the €9 ticket is probably not needed.

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