The 11.1 per cent drop in global passenger demand last month has started showing its impact on the balance sheets of some airlines. German carrier Lufthansa on Thursday registered a 10.3 per cent decline in its global revenue during the first three months of 2009 against a year ago. The airline’s operating loss in the same period stood at euro 44 million.

Lufthansa has been taking various measures to keep it flying. As part of reorganisation of its sales offices, the carrier will shut down its offices in Chennai, Bangalore, Kolkata and Hyderabad from next month.

The airline, which at present operated 54 flights per week from seven destinations in India, is still optimistic about its operations here. “We have been operating in India for 50 years. It is an essential core market. We are not going to change our current summer schedule because of the slowdown,” the airline said in an e-mailed response to Financial Chronicle.

However, the company blamed lower passenger and freight demands for the significant decline in margins. “The current crisis is putting a strain on our profits. But we are developing our core business through the expansion of passenger airline group and strengthening of our alliances and partnerships to emerge from the current financial climate stronger than ever, said Stephan Gemkow, chief financial officer for Lufthansa. The aviation industry has been struggling to survive in the recent scenario. According to International Air Transport Association’s (IATA) data, European airlines witnessed an 11.6 per cent fall in March. For Asia Pacific and North American carriers, the drop is even sharper at 14.5 per cent and 13.4 per cent, respectively.