Deutsche Lufthansa AG, Germany's largest airline, reported today a 65 per cent drop in net profit for 2008, as the economic slowdown and higher fuel prices ate into its bottom line. The company also lacked the large one-time gains it booked in 2007.
The Cologne-based airline said net profit for the year fell to $755 million.
Lufthansa's operating profit fell 2.2 per cent to euro 1.35 billion in 2008 from euro 1.38 billion in 2007, when the company booked one-time gains, including euro 503 million from the sale of its stake in travel company Thomas Cook.
The company, which did not immediately release fourth quarter figures, said revenues were 14 per cent higher at euro 25 billion, from euro 22 billion in 2007.
Lufthansa Chief Executive Wolfgang Mayrhuber said the company is well equipped to cope with the global economic crisis, although the company said it's "not possible to forecast the duration and extent" of the downturn.
"One of the most challenging years in its history lies ahead of the aviation industry," Lufthansa said.
The company said the global economic slowdown has been particularly felt in its passenger and catering business segments.
