Lufthansa declares losses but stays optimistic
Lufthansa airline has confirmed a €984m ($1.2bn) net loss in 2003.
The Cologne-based company's operating profit before exceptionals was €36m, substantially down on last year's €718m.
Unsurprisingly, the airline will not be paying a dividend to shareholders.
It was hit by a €783m accounting charge, most of it accounted for by extraordinary write-downs at LSG Sky Chefs, its troubled catering arm.
However, the company said it was confident of a positive result in 2004, thanks to an improving outlook and ongoing restructuring.
Chief Executive Wolfgang Mayrhuber said: " We have mastered the crisis in a turbulent 2003 although I am not satisfied with the results."
Lufthansa made a €415m loss in Q1 of 2003 but recovered over the year due to a gradual upswing in its core airline business.
European passenger numbers were up three per cent, but revenue was down 1.5% at €4.94bn.
The airline had been forced to offer ever more attractive fares to counter the low-cost sector challenge.
It now plans to introduce a rationalisation programme with €1.2bn savings sought by 2006.
This includes an efficiency-boosting drive, a restructuring of short-haul operations and the introduction of more flexible working practices.
Shares in the company traded at €12.75 in Frankfurt this morning.
