Lufthansa sees return to black in 2004
25 March 2004
FRANKFURT – German airline Deutsche Lufthansa expects to return to the black in 2004 after absorbing record losses last year, with further cost-cutting expected to produce results, company chairman Wolfgang Mayrhuber said Thursday.
He said costs this year were to be reduced by EUR 430 million, while total cost reductions in two years’ time would reach EUR 1.2 billion.
At the same time, Lufthansa is moving to build up regional operations, with plans to boost its stake in the Eurowings company from the current 24.9 percent to 49 percent effective 1 April.
In 2003, Lufthansa’s revenues fell 6 percent to EUR 16 billion, while the company reported a record loss of EUR 984 million after one-off charges in writing down the catering subsidiary LSG.
In its normal business, Lufthansa in 2003 managed a thin operating profit of EUR 36 million.
Subject: German news