Bruce Barnard, Special Correspondent | Mar 08, 2012 9:48AM EST
Lufthansa, Europe’s second-largest airline, swung to a net loss of $17 million in 2011 from a $1.5 billion profit in 2010 as losses from the ongoing sale of U.K-based BMI weighed on the German carrier.
Lufthansa said discontinued operations, which cut earnings by $376 million, reflected a loss at BMI and the valuation linked to its sale to British Airways.
International Airlines Group, BA’s parent, agreed in December to acquire BMI for $272 million to obtain the unprofitable carrier’s valuable landing slots at crowded London Heathrow airport.
Lufthansa’s operating profit slumped 18 percent to $1.1 billion, while revenue increased to $37.9 billion from $35 billion in 2010.
Lufthansa, which posted net profit of $380 million in the first nine months of 2011, didn’t break out fourth quarter results.
The Cologne-based carrier is due to publish a detailed earnings report, including Lufthansa Cargo, on March 15.
Contact Bruce Barnard at brucebarnard47@hotmail.com.
