The FINANCIAL — Deutsche Lufthansa AG has achieved the targeted improvement in earnings well. Adjusted for non-recurring effects, the operating profit rose year on year by 62 per cent to EUR 1.042bn (previous year: EUR 643m), according to Deutsche Lufthansa AG.
The reported operating profit came to EUR 697m, having totalled EUR 839m the previous year. A comparison of the reported results is of little informational value, however. The previous year’s reported 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.
Lufthansa Group revenue was stable at EUR 30.0bn (previous year: EUR 30.1bn). At EUR 313m, net profit for the year, which last year also included a profit of EUR 631m from the sale of shares in Amadeus IT Holding, S.A., was lower, as expected (previous year: EUR 1.2bn), according to Deutsche Lufthansa AG.
“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. This performance trend is sustainable. It is based on a continuous improvement in the cost structure and on the billions invested in new products and services. Customer feedback here is extremely positive. This performance in our core business segment has prompted us to propose to the Annual General Meeting that a dividend of EUR 0.45 per share be paid,” Christoph Franz, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, said.
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