German airline Lufthansa reported a $2.3 billion loss for the first quarter, amid its plan to restructure operations to counter the impact of the COVID-19 pandemic. The news comes on the heels of the German government's announcement last week of a $10 billion bailout for the airline.

Despite the cash injection, Lufthansa still has a long road ahead as it tries to stabilize its business after the massive drop-off in demand since the fallout of the global coronavirus pandemic really took hold in March.

And things will get worse before they get better. The group's finance chief said on Wednesday it expects a significantly larger loss in the second quarter.

Despite plans to resume many flights this summer, it still expects to be at just 40 percent of its previous levels by September.

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Big job cuts are expected as the airline works towards trying to pay back some of the $10 billion it will owe the German government.

Lufthansa says it will cut its workforce at subsidiaries Brussels Airlines and Austrian Airlines by around 25 percent and 20 percent respectively. It hasn't said yet how many jobs will be lost at Lufthansa itself.

That could be especially tricky, given the airline's long-running labor disputes with several unions in Germany.

Earlier this year, Lufthansa grounded 700 of its 763 planes. Next year, the airline says 300 aircraft will remain out of service, and then 200 in 2022. Lufthansa expects to then permanently reduce its fleet by 100 in 2023.

The financial package negotiated with the German government has yet to be approved by the EU Commission and must be backed by Lufthansa shareholders at an extraordinary general meeting on 23 June.

The European Commission is expected to force Lufthansa to give up some take-off and landing slots at its Munich and Frankfurt hubs to reduce unfair competition as a result of the bailout.

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