Deutsche Lufthansa AG reports €980m net loss

Deutsche Lufthansa AG said that on the basis of preliminary indications it posted a net loss of €980m for 2003, and as a result of this, will not pay a dividend.

The airline is Europe's number three passenger airline (behind British Airways and Air France) and is also the world's number two cargo airline behind FedEx.

Extraordinary amortizations of goodwill and depreciations of fixed assets amounted to roughly €800m, of which some €700m are accounted for by its LSG SkyChefs Group unit, Lufthansa said.

The airline stated: "The amortizations effected in the 2003 annual financial statements do not affect liquidity and will therefore impair neither the operational business nor the future perspectives of the group".

Deutsche Lufthansa AG has said it has posted an operating profit for 2003 of €30m, and net debt fell €550m to around €600m.

In contrast, for 2002 the airline posted a net profit of €717m, an operating profit of €1.6bn, and paid a dividend of €0.60.

The company said that developments in the first quarter showed a more positive development than in the previous year, particularly on intercontinental routes.

As a result, an increase in the seat capacity offered and the addition of new routes are planned for the summer schedule, particularly in routes to Asia, after the significant declines caused by the crisis of last year, it said.

The company also said that "stagnating continental traffic still does not show any signs of recovery."

It will release more details on cost-cutting programs, and plans for efficiency improvement on 25 March.