Lufthansa reports unexpected loss due to BMI

8th Mar 2012 11:29

German airline Lufthansa reported an unexpected 2011 loss, largely as a result of British Midland (BMI), the low-cost airline it is in the process of offloading to International Consolidated Airlines Group.Lufthansa reported a net loss of €13m in contrast to the €1.1bn profit generated in 2010.The loss "reflects current losses at British Midland and valuation effects linked to its disposal," explained the German airline in a statement. Lufthansa's operating earnings totalled €820m compared to €1bn a year earlier. The company proposed a 2011 dividend of €0.25, down from the 2010 dividend payout to shareholders was €0.60. Revenue, on the other hand, rose to €28.7bn from €26.5bn in 2010.By 10:24am, shares of Lufthansa were down 0.15% to €10.01.M.G.