Lufthansa shares surge on announcement of €9bn bailout.

Lufthansa shares were making gains on Wednesday in response to a media report saying the embattled airline had reached an agreement with the German government on the terms of a bailout package.

The online trading platform Tradegate showed Lufthansa shares 4.5 per cent up shortly after German news magazine Der Spiegel reported that a bailout package of around nine billion euros (9.7 billion dollars) had been agreed.

The Finance Ministry, the German government and Lufthansa all declined to comment on the report, but Chancellor Angela Merkel said that a decision was to be announced “shortly.”

The Federal Government had proposed taking a stake in the company of up to 25 per cent plus one share, as well as two seats on the supervisory board, the report said.

Lufthansa has been hit hard by a decline in travel due to the coronavirus pandemic

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