Lufthansa today reported its first full-year loss in almost a decade as Europe's second largest airline registered the impact of last September's terrorist attacks, which exaggerated the global economic slowdown.
The company slid to a pre-tax loss of €754 million in the 12 months to the end of December, compared with a profit of €1.2 billion in 2000, according to preliminary figures released today.
Lufthansa said that the losses had led it to cancel any dividend payments for 2001 compared with a payment of 60 cents in 2000.At the operating level, however, Lufthansa managed to avoid a loss as profits slumped to €20 million from €1.04 billion last time.
The result was ahead of expectations with most analysts anticipating the group would register a small loss at the operating level.
Revenues rose 10 per cent to €16.7 billion, artificially inflated by the consolidation of Lufthansa's airline catering businesses. Provisions for contingent losses of €180 million in catering, largely in its US business, along with a €500 million depreciation charge, pushed the carrier into losses.
"The impact of the terrorist attacks and the weakening global economy gravely affected the past business year," the carrier said. It is due to release details of its full-year performance on April 25th.
Lufthansa also said the board had decided to promote Mr Wolfgang Mayrhuber, the chief executive of its core passenger business, to group deputy chairman, making him the likely successor to chairman Mr Jürgen Weber.
Mr Weber said the board's decision showed a "strong commitment to retaining and expanding our leading position in the industry."
Most major airlines racked up huge losses last year with the industry worldwide expected to suffer combined losses of some $15 billion.
Financial Times Service