No rescue deal yet for German airline Lufthansa amid solvency warnings

Lufthansa has not yet agreed on a 9 billion euro ($9.73 billion) rescue package, following a report overnight that said an agreement was complete.

Lufthansa declined to comment and a spokeswoman for the economy ministry had no immediate comment.

Shares in the airline were up 6.9% at 0655 GMT which traders attributed to prospects of a nearing deal amid time pressure to stem ongoing losses.

The company has issued stark warnings about its solvency amid a gloomy outlook for the industry.

News outlet Business Insider had cited company sources as saying that Berlin would help the airline in return for a blocking minority and one or two supervisory board mandates.

It said representatives of the government and the airline had agreed on those points on Monday but Lufthansa CEO Carsten Spohr had not officially taken part in the discussions.

It said Spohr wanted to formally seal the deal with Chancellor Angela Merkel and Finance Minister Olaf Scholz on Tuesday.