LH profits nosedive

FRANKFURT  German airline Lufthansa revealed Friday it will not pay a dividend to shareholders for 2014 after profits nosedived last year.
Lufthansa said in a statement its net profit amounted to 55 million euros (USD62 million) in 2014, down from 313 million euros a year earlier.
The airline said its bottom line was burdened by changes in the value of a convertible bond it had issued in 2012, and losses on its options for fuel price hedging.
Strike action by its pilots also weighed on earnings, the carrier said.
inside no 10At an underlying level, operating profit rose to 954 million euros from 699 million euros a year earlier, while revenues were unchanged at 30 billion euros.
Strike costs totalled 62 million euros in November and December alone and 232 million euros for the whole year.
“In line with the company’s long-term dividend policy, the executive board decided at its meeting today to submit a proposal not to pay a dividend for the year,” Lufthansa said.
For 2013, it had paid out a dividend of 0.45 euro per share.
Full details of its 2014 would be published on 12 March, the airline said.

sourced:ttrweekly.com