Lufthansa FY div cheers as one-off boosts profit

FRANKFURT Wed Mar 9, 2011 6:54pm IST

The tail of of Germany's Deutsche Lufthansa aircraft is pictured at Frankfurt Airport April 7, 2010. REUTERS/Johannes Eisele/Files

The tail of of Germany's Deutsche Lufthansa aircraft is pictured at Frankfurt Airport April 7, 2010.

Credit: Reuters/Johannes Eisele/Files

Related Topics

Coal Mining In The Punjab

Coal Mining In The Punjab

In Choa Saidan Shah miners dig coal with crude pick axes and load it onto donkeys to be transported to the surface earning a team of 4 workers around $10 to be split between them.  Slideshow 

FRANKFURT (Reuters) - Deutsche Lufthansa announced a bigger than expected 2010 dividend after a one-time tax effect and steady economic recovery boosted its bottom line, sending its shares higher.

Germany's flagship carrier said on Wednesday it would propose paying shareholders a dividend of 0.60 euros per share, almost 40 percent more than the Thomson Reuters I/B/E/S consensus of 0.43 euros, after paying none a year earlier.

"The dividend is good news," a Frankfurt-based trader, who declined to be named, said, adding the news was encouraging investors.

Lufthansa stock was up 3.2 percent at 15.09 euros by 1308 GMT, outperforming the STOXX Europe 600 Travel & Leisure index, which was up 1.8 percent.

Lufthansa swung to a 2010 net profit of 1.1 billion euros ($1.53 billion) that was more than double the consensus of 485 million, helped by a 400 million-euros one-time tax effect and economic recovery.

Lufthansa is due to publish full 2010 results on March 17, at which time it is also expected to comment on its expectations for 2011.

The company said in October it expected business to remain strong into 2011 after demand for international premium class travel and cargo services improved in the quarter up to the end of September.

But since then, soaring oil prices have become a concern to travel-related companies.

International oil prices hit a 2-1/2 year high recently, with U.S. crude staying above $100 per barrel on unrest in Libya that comes in the wake of protests in other countries in the region including Egypt and Tunisia.

Industry body IATA has said it expects global airlines' net profits to halve to $8.6 billion this year as rising costs, especially oil prices, offset increasing demand.

Cathay Pacific earlier on Wednesday warned that high oil prices could hurt its results this year, and analysts said they expected the Hong Kong-based carrier would follow rivals including Qantas Airways in raising its fuel surcharge.

(Additional reporting by Josie Cox; Editing by Mike Nesbit)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

WTO Row

WTO Row

Some WTO members discussing customs deal without India - sources  Full Article 

Fed Policy

Fed Policy

Fed presses forward with bond buying, cites uptick in inflation.  Full Article 

Q2 Profit Slips

Q2 Profit Slips

Samsung sees tough second half  Full Article 

Chinese Economy

Chinese Economy

China should set lower 2015 GDP growth target of 6.5-7 percent - IMF  Full Article 

Default Imminent

Default Imminent

Argentina fails to reach debt agreement   Full Article 

Economy Reboots

Economy Reboots

U.S. economy back on track with strong second-quarter rebound  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage