Tourism Industry News

Lufthansa Reports 64 Percent Drop in Group Profit

23/03/2009 11:43

planeLufthansa said it almost matched last year’s results by posting operating profit of around 1.35 billion euros. The group profit was posted at 599 million euros; last year’s figure was 1.66 billion euros, but it also included 585 million euros of profit from extraordinary items.


In view of the very good result and taking into consideration the current challenging economic situation, the Supervisory Board and Executive Board will be proposing a dividend of 70 eurocent per share at the annual general meeting. The recession affected the passenger and catering business segments, but the operating results of the remaining business segments developed positively.


In the passenger business segment, fuel costs at record levels, strike-related losses and the decline in demand caused by the state of the world economy during the second half of the year, all had a negative effect on the result.


However, the attractive premium products, a demand-oriented offer strategy and the successful integration of Swiss International Air Lines all played decisive roles in ensuring a year-on-year growth in sales.


Source: CaribbeanNewsDigital



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