2008 results hit by downturn
Lufthansa has blamed a 63.8% decline in yearly profits on record fuel costs, strike-related losses and an industry-wide fall in demand.
The airline reported group profits of €599m in 2008 down from €1,655m year-on-year, prompting it to halve its proposed share dividend.
But Lufthansa said the 2007 figure included €503m profit from the sale of shares in Thomas Cook and book gains of €82m from the purchase of its own stock by WAM Acquisition S.A.
Lufthansa said it would propose a per share dividend of €0.70, almost halving 2007's figure of €1.25 as a result of the "current challenging economic situation."
Operating profit came in at €1,354m, just 1.7% down from €1,378m in 2007, while revenue increased 10.9% from €22.42bn to €24.9bn.
Remaining optimistic, Lufthansa's chairman and ceo Wolfgang Mayrhuber said it was an "outstanding result."
"Its quality is underlined by the fact that it has been achieved during a time of global economic crisis. It reflects the quality of our company," he said.
Mr Mayrhuber said 2009 would be "one of the most challenging years" in aviation industry history.
Anticipating "significantly higher" business risks in 2009, Lufthansa said it would implement strict cost and capacity management.
Lufthansa has predicted positive result in 2009 but "clearly below the previous year's."
Undiluted earnings per share stood at €1.31 last year, down 63.7% from €3.61 in 2007. Lufthansa's share price was up 2.68% to €8.41 at 1200GMT.
Speaking on the mergers with Austrian Airlines and Brussels Airlines, Mr Mayrhuber said the economic crisis had revealed "structural deficits in European aviation."
"It has become obvious that European and intercontinental network connections from smaller and medium-sized markets can no longer be realised," he said.
"Only a strong and economically successful European airline structure can meet the specific requirements of the European economy."
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