German airline Lufthansa said it made €990m net profit last year.
But it cancelled its dividend payment to shareholders and said it would close sites and merge office functions as it presses ahead with restructuring its business.
The airline's net profit compares to a loss of €13m from 2011.
The improvement came mostly from the sale of equity investments, not better earnings from its businesses.
Chief executive Christoph Franz said that the company needs to "perform even better."
Lufthansa said it would merge finance, purchasing and human resources activities and close its head office in Cologne, which has a staff of 365, by the end of 2017. It will also close an office in Norderstedt where 350 people work and consider moving the headquarters of its Lufthansa CityLine division from Cologne to its operational base in Munich.
The company has already announced it needs to drop 3,500 office jobs and move some European routes to its low-cost airline Germanwings.
The company is trying to improve operating profits by €1.5 billion by 2015. It said that it would invest €9 billion from 2015 to 2015 in new planes that would be cheaper to operate.
It plans to buy eight long-haul planes and 100 short- and medium-range planes. Lufthansa flies aircraft from both Airbus and Boeing. For the entire year, revenues rose 4.9% to €30.1 billion.
The company will release its full earnings in March.