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Germany's Lufthansa says it will run out of cash within weeks without help

Germany's Lufthansa says it will run out of cash within weeks without help

German airline Lufthansa on Thursday warned that it needs a bailout from Germany's government to avoid catastrophe.

In a statement obtained by Bloomberg, the struggling airline pointed to this week's sharp decline in oil prices as a factor that had further hurt the airline's finances as it was already hurting from decreased travel due to the coronavirus outbreak.

Company execs and German officials have reportedly been in talks for weeks about a bailout, with German officials pushing for direct control over the company as part of the deal, according to Bloomberg.

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“The management board is confident that the talks will lead to a successful conclusion,” Lufthansa's statement read.

Analysts at Berenstein Research said that the airline's statement indicated a need for Germany's government to take quick action.

“Right now, it is quite literally state aid or bust," said analysts Daniel Roeska and Alex Irving, according to Bloomberg. “Evidently, credit markets are all but closed even to the group with the largest unencumbered fleet in Europe.”

Lufthansa's statement comes as two other airlines, Virgin Australia and U.K.-based FlyBe, have already been forced into voluntary administration due to financial hardships brought on by the pandemic.

The Treasury Department said this week that six airlines had accepted payroll assistance from the U.S. government to avoid layoffs during the outbreak, while others were in talks to do so as well.