Air Transport World

Lufthansa.(Europe)(Deutsche Lufthansa AG airlines reports losses)

The German carrier slumped in 2003 to its biggest loss since full privatization in 1997, impacted strongly by big write-downs announced last autumn. The results forced the aviation group to scrap a dividend and reassess its highly diversified business strategy as pesky no-frills airlines continued to nibble away at its passenger business in Europe.

The group net loss of nearly 1 billion [euro] ($1.26 billion) for 2003 was a significant reversal from earnings of more than 700 million [euro] in the prior year. Revenues declined 6%. Results included "unscheduled amortization and depreciation charges" of 783 million [euro], primarily a massive writedown related to faltering catering unit LSG Sky Chefs. …

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