German Lufthansa Group has finalized its acquisition of Italian airline ITA Airways, closing a long period of uncertainty for Italy’s former flagship carrier.

With coronavirus cases spiking in the U.S. and Europe, the financial outlook of the world’s airlines is getting worse. The latest estimate breaks down to airlines losing $66 for every passenger carried this year. However, the trade group now sees a quicker recovery. Last year, airlines carried 4.5 billion passengers, according to the trade group. It estimates that number will plunge to 1.8 billion this year, then rise to 2.8 billion next year.

Especially for long-haul routes there will be no quick recovery, CEO Carsten Spohr said in a statement accompanying the quarterly earnings statement. Lufthansa said it carried 96% fewer passengers during the April-June quarter and experienced an 80% drop in revenue, to 1.9 billion euros from 9.6 billion euros in the same quarter a year earlier. The cargo division made a profit of 299 million euros, up from 9 million a year ago. Lufthansa has started flying short-haul vacation flights but in July its offerings reached only around 20% of last year's level. It said short and medium haul capacity would increase to 40% in the third quarter and long-haul capacity to 20%.

BRUSSELS The EU competition chief said Friday that she is not creating extra hurdles" for Lufthansa after the airline balked at accepting a 9 billion-euro German government rescue package because of what it said were tough EU conditions. Margrethe Vestager said that EU rules require bailouts to include measures that would maintain a level playing field. We very often have a discussion about slots when it comes to airlines and competition," Vestager said. Vestager said the EU wants to find a solution in the Lufthansa case and that the EU Commission remained in close contact with German authorities. The package conditions would also let the government block the possibility of an unwanted takeover.