JOC Staff | Feb 20, 2013 10:17AM EST
Lufthansa’s operating profit slumped 36 percent in 2012 from the previous year, prompting the German carrier to suspend its dividend and intensify its cost-savings program.
The carrier, which partially attributed the decline in profit, to 524 million euros ($697million) from 820 million euros ($1.14 billion) in 2011, to restructuring costs, did not provide a breakdown between its cargo and passenger business. It is scheduled to publish its full earnings report on March 14.
Europe’s second-largest airline booked net income of 990 million euros ($1.32 billion) against a 13 million euros ($17.3 million) loss in 2011, helped by one off items, including a 307 million euros ($408.3million) gain on the sale of its stake in the Amadeus airline bookings system.
Revenue grew 4.9 percent to 30.1 billion euros ($40 billion).
Lufthansa said it will cut costs by shuttering sites, including its Cologne headquarters, and merging administrative functions to achieve 3,500 job cuts.
The airline also announced it plans to buy eight long-haul aircraft and 100 short-to-medium range planes worth around $12 billion, with deliveries scheduled from 2015 through 2025.
