UPDATE 1-Airline caterer DO&CO counting on revival of on-board meals after quarterly loss

(Adds outlook, shares)

VIENNA, Aug 12 (Reuters) - Airline catering group DO & CO reported on Wednesday a loss for the April-June quarter as coronavirus-related travel bans, event cancellations and restaurant closures took a toll.

Revenues from the Austrian group’s core airline catering business slumped 86% from a year earlier in the period, its fiscal first quarter. However, it said that there were positive signs as more and more airlines were starting to serve food on board again as passengers, particularly in premium classes, had become dissatisfied with services on offer.

The outlook for DO&CO’s business as a whole would continue to be affected by the pandemic.

“In the coming quarters of the business years 2020/2021, the net result will generally be strongly affected by the COVID-19 situation as well,” the group said in its earnings release.

DO & CO shares, which have more than halved in value since the beginning of the year, fell as much as 2.85% and were down 2% at 41.30 euros at 0918 GMT.

The group, which also caters for German soccer club Bayern Munich and operates Vienna’s famous Demel cafe, said further restructuring was likely but did not give details.

In June it said it was evaluating the closure of some of its 32 kitchens located in 12 countries, where customers include Turkish Airlines, Lufthansa’s Austrian Airlines and Cathay Pacific.

DO & CO reported a first-quarter net loss of 22.15 million euros ($26 million) following a profit of 5.7 million the previous year. Revenue dropped 87% to 32.5 million euros.

DO & CO said its restaurant business was picking up and post-lockdown revenue at some of its locations in Vienna was even higher than in the same period of last year.

However, the Demel cafe, which is usually much frequented by international travellers, will be closed until further notice.

$1 = 0.8521 euros Reporting by Kirsti Knolle Editing by Riham Alkousaa and Susan Fenton