German airline Lufthansa revealed yesterday it will not pay a dividend to shareholders for 2014 after profits nosedived last year.
Lufthansa said in a statement its net profit amounted to €55mn ($62mn) in 2014, down from €313mn a year earlier.
The airline said its bottom line was burdened by changes in the value of a convertible bond it had issued in 2012, and losses on its options for fuel price hedging.
Strike action by its pilots also weighed on earnings, the carrier said.
At an underlying level, operating profit rose to €954mn from €699mn a year earlier, while revenues were unchanged at €30bn.
Strike costs totalled €62mn in November and December alone and €232mn for the whole year.
“In line with the company’s long-term dividend policy, the executive board decided at its meeting today to submit a proposal not to pay a dividend for the year,” Lufthansa said.
For 2013, it had paid out a dividend of €0.45 per share.
Full details of its 2014 would be published on March 12, the airline said.
