Germany's Deutsche Lufthansa expects 2005 operating results to be on a par with 2004 after taking into account the integration of Swiss International Air Lines, the airline said on March 23. Lufthansa said it is proposing a 2004 dividend of 0.30 euros per share after its 2004 operating profit rose to 383 million euros ($505 million) from 36 million in 2003. Sales climbed 6.3 percent to 17 billion euros in 2004.
"Our financial base is now even stronger, customer satisfaction is higher than ever before and our fitness programme is running according to plan," Lufthansa chief Wolfgang Mayrhuber said. "We are now leaner and stronger."
Lufthansa, which on Tuesday agreed to buy loss-making Swiss at a cost of up to about 310 million euros, is trying to make savings of 1.2 billion euros by 2006 to help it compete in an increasingly tough air travel market.
Finance chief Karl-Ludwig Kley said on Wednesday Lufthansa expects one-time integration costs of 101 million euros on the Swiss takeover.
The German airline said it achieved cost savings of 378 million euros by the end of 2004 and expects additional savings of 402 million by the end of 2005.
The company was weighed down by high oil costs - US crude oil struck a record $57.60 per barrel just last week - with fuel costs rising 35 percent to 1.8 billion euros in 2004. Hedging reduced the fuel bill by 232 million euros.
Lufthansa said its LSG catering division, which in 2003 helped to steer the airline to a net loss of 984 million euros, was making good headway in its restructuring and would post a positive result for 2005 before restructuring costs.
The airline said 2004 group net profit was 404 million euros. When reporting preliminary results three weeks ago, it had said net profit was about 400 million, and operating profit was about 380 million euros.
Lufthansa added that it sees net cash, after taking on Swiss debt, at 380 million euros.
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