High fuel costs and air traffic tax burden Lufthansa result for 2011

High fuel costs and air traffic tax burden Lufthansa result for 2011

Lufthansa upped its revenue by 8.6 per cent to €28.7 billion in the 2011 financial year and posted an operating profit of €820 million.

Operating profit at the European airline was therefore down €200 million compared to the previous year.

Chief executive, Christoph Franz, explained: “Posting a profit of this size is impressive in such a turbulent environment shaped by exogenous shocks and regulatory pressures.

“This confirms once again that the Lufthansa Group is Europe’s number one.”

As of the year-end, the net loss for the period comprised a loss of €285 million from discontinued operations.

This included the current result recorded by the group company British Midland (bmi) – which is due to be sold to the International Airlines Group – and valuation effects in connection with its disposal.

Taking this into consideration, the group generated a net loss of €13 million.

However, the result from continuing operations amounted to €289 million.

Despite posting a negative result in its individual financial statements prepared in accordance with German commercial law (HGB), Lufthansa intends to make an exception and deviate from its dividend policy.

The Company will therefore propose a payout of €0.25 per share at the Annual General Meeting on May 8th.

Franz commented: “Trusting in the Lufthansa share and our Company’s positive development is worthwhile. #

“That is why we want to enable our investors to share in our operating profit again this year.”