Lufthansa profits nosedive in 2013 but payment of dividend resumes

Thursday 13 March 2014 08.07
Lufthansa's full-year net profit fell by 74.5% to €313m due to restructuring and project costs
Lufthansa's full-year net profit fell by 74.5% to €313m due to restructuring and project costs

Lufthansa, Germany's biggest airline, said that its bottom-line profit nosedived in 2013, but it will resume dividend payments to shareholders. 

Lufthansa said in a statement that its full-year net profit fell by 74.5% to €313m.

But that was because "the previous year's result was largely boosted by non-recurring income from transferring operations at Austrian Airlines, while the result for 2013 was depressed by restructuring and project costs for the installation of the new Lufthansa business class seats," the airline explained.

Stripping out the one-off effects, underlying or operating profit jumped by 62.1% to €1.042 billion.

Revenues for the year dlipped by 0.4% to €30.028 billion, Lufthansa said.

"We have strengthened the earnings power of the Lufthansa group again last year. This is driven by the earnings performance in the passenger business, where all airlines rose significantly," said chief executive Christoph Franz.

"This performance in our core business segment has prompted us to propose to the annual general meeting that a dividend of 45 cent per share be paid," Franz said.

Lufthansa last paid a dividend of 25 cent per share in 2011.