Lufthansa resumes dividend payments

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The results were the first announced since Christoph Franz took over as chief executive on January 1 from Wolfgang Mayrhuber, who had helped drive consolidation in the global airline industry. Mr Franz was previously deputy chief executive.

Lufthansa’s revenues last year were €27.3bn, up from €22.3bn. Operating profits rose to €876m from €130m. A dividend of €0.60 per share was proposed. In 2009, no dividend was paid.

The company gave no further details ahead of its annual results presentation next week. The headline numbers had been released after a board meeting because they diverged substantially from market expectations, it said.

Last year, Lufthansa was hit by strike action by its pilots, followed soon after by six days of cancelled flights in April because of a volcanic eruption in Iceland. Further disruption followed in December because of the severe winter weather. Lufthansa also saw costs arising as a result of higher oil prices.

But the airline has recently benefited from increasing passenger numbers and freight business – which has been boosted by the strong export-led economic recovery seen in Germany last year.

By
Neha Jain

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