Lufthansa optimistic despite loss
 |
Story Tools
|
FRANKFURT, Germany (Reuters) -- Deutsche Lufthansa said on Wednesday it made a net loss last year of 980 million euros ($1.2 billion), compared with a profit of 717 million euros in 2002, as plunging operating profits and a hefty writedown took their toll.
However, it said prospects were brightening. "Data available for the first quarter 2004 shows a favorable development compared with the previous year,'' Europe's third-largest airline said in a preliminary results statement.
The airline also took a hefty 700-million-euro writedown last year on Chef Solutions, a catering business it plans to sell but its operating profit of 30 million euros plunged 96 percent from some 718 million euros in 2002.
In contrast, larger rival British Airways reported its strongest quarter in 12 years this month as its bolder approach to slashing excess jobs and flights paid off.
In addition to weak economic conditions last year, made worse by the SARS virus and the war in Iraq, Europe's full-service airlines are also struggling to contend in their short-haul markets with no-frills carriers grabbing market share and driving down fares overall.
Lufthansa said it would not pay shareholders a dividend for the year after a 0.60 euro year-end payout for 2002.
On a positive note, it said it reduced its debt by 550 million euros to 600 million euros last year.
Lufthansa shares were trading unchanged at 14.31 euros by 0930 GMT, when the overall Germany market's DAX index was off 0.56 percent.
The airline's final figures for 2003 are due on March 25.
Copyright 2004
Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
