Lufthansa reports net profit of EUR1.1bn, operating result of EUR879m
Lufthansa Group posted a net profit of EUR1.1 billion and an operating result of EUR876 million for 2010. The Lufthansa executive and supervisory boards will be proposing a dividend of EUR0.60 per share.
- Lufthansa Group reported a net profit of EUR1.1 billion and an operating result of EUR876 million for 2010.
- The company plans to propose a dividend of EUR0.60 per share.
- Lufthansa Group maintains its forecast for the current business year, expecting revenue and operating results to surpass the previous year.
- The carrier will accelerate its cost reduction program in response to rising oil prices, aiming to cut EUR1 billion in costs between 2008 and 2011.
- At least EUR350 million in cost cuts are expected to be achieved this year.
- Lufthansa Group's shares closed 0.2% higher following the announcement.
Lufthansa Group Chairman and CEO Christoph Franz confirmed the company's forecast for the current business year, saying he continued to believe that the group would post revenue and an operating result above the previous year's figure. Mr Franz added it is too early to provide a more detailed profit forecast after the turbulent start to the year.
The carrier has also confirmed it would accelerate its cost reduction programme across all business segments and the group headquarters, in reaction to the increasing price of oil. The carrier has set a goal of cutting EUR1 billion out of its costs between 2008 and 2011. At least EUR350 million in cost cuts are due to be realised this year.
Shares in the carrier finished 0.2% higher yesterday.