Lufthansa reports historic results with 45pc earnings rise
Shares in Lufthansa Group, Germany's largest airline, were up over 3pc yesterday after the company reported earnings before interest and tax of €3.3bn for 2017, a 45pc increase on its 2016 performance, and the company's best result in its history.
The increase in earnings included the positive €582m one-off effect from a collective labour agreement with the pilots' union of Lufthansa, Lufthansa Cargo and Germanwings, which was recognised in the income statement in December, the company said. Revenue at the group rose 12.4pc year-on-year to €35.6bn, with the company citing the performance of the group's airlines as a whole for the strong performance, according to financial statements from the group.
"Our endeavours of the past few years are paying off," Carsten Spohr, chairman and chief executive of Lufthansa, said.
During the year the group invested approximately €3bn, around a third more than in the previous year.
This was partly due to investments of €900m into aircraft from the Air Berlin flight operations.
Meanwhile Virgin Atlantic nosedived into the red last year after taking a hit from the Brexit-hit pound, hurricane disruption and engine woes that grounded some of its planes.
The carrier reported underlying pre-tax losses of £28.4m for 2017, against profits of £23m in 2016. It marked it first loss for four years and came amid "significant operational challenges and a difficult economic backdrop," according to the group. (Additional reporting from PA).