German airline Lufthansa has said its 2008 net profit fell 64% to €599m and that it expected a further drop this year.
The fall reflected the fact that record 2007 results were boosted by €585m in exceptional items, Lufthansa said, adding that it expected to make a profit this year but it would be smaller than the one in 2008.
The 2008 outcome 'represents an outstanding result and its quality is underlined by the fact that it has been achieved during a time of global economic crisis,' a statement quoted Lufthansa chairman and chief executive Wolfgang Mayrhuber as saying.
But analysts had forecast a higher net profit of €738m. Mayrhuber said that 2009 would present a 'far more challenging environment'.
Despite a litany of problems, including record fuel costs, strike-related losses and a drop in demand owing to the global economic slump, the airline's operating profit fell just 1.7% to €1.35 billion.
Meanwhile, two other major airlines, Cathay Pacific, one of Asia's top carriers, and Delta from the US, also posted heavy losses for 2008, with Cathay also forecasting 'an extremely challenging year in 2009.'
Cathay Pacific said it lost more than $1 billion last year, its first annual loss in a decade and a huge drop from the previous year's profit of almost $900m.
US carrier Delta lost a whopping $8.9 billion, said it would cut another 10% from international capacity and also suggested that more jobs might disappear as well. Delta's loss was partly the result of heavy charges related to its purchase of Northwest Airlines.
