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Lufthansa profits fall by 75 percent

Lufthansa, Germany's biggest airline, said on Thursday that its bottom-line profit nosedived in 2013, but it will resume dividend payments to shareholders.

Lufthansa profits fall by 75 percent
Photo: DPA

Lufthansa said in a statement its full-year net profit fell by 74.5 percent to €313 million.

But that was because "the previous year's result was largely boosted by non-recurring income from transferring operations at Austrian Airlines, while the result for 2013 was depressed by restructuring and project costs for the installation of the new Lufthansa business class seats," the airline explained.
 
Stripping out the one-off effects, underlying or operating profit jumped by 62.1 percent to €1.042 billion, while revenues slipped by 0.4 percent to €30.028 billion.
 
"We have strengthened the earnings power of the Lufthansa group again last year. This is driven by the earnings performance in the passenger business, where all airlines rose significantly," said chief executive Christoph Franz.
 
"This performance in our core business segment has prompted us to propose to the annual general meeting that a dividend of 0.45 euro per share be paid," Franz said.
 
Lufthansa last paid a dividend of 0.25 euro per share in 2011.

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CHRISTMAS

Strikes hit Amazon in Germany in the run up to Christmas

Around 2,500 Amazon employees at seven sites across Germany were on strike on Tuesday and unions warned stoppages could continue up to Christmas.

Amazon parcel in factory
A parcel rolls along a conveyor belt at an Amazon packing facility in Gera, Thuringia. Photo: picture alliance/dpa/dpa-Zentralbild | Bodo Schackow

The strikes at so-called “fulfilment” centres, where Amazon prepares packages before delivery, began in two locations on Monday.

The Verdi union is calling on Amazon for an “immediate” salary increase of three percent this year, followed by a further 1.7 percent next year, in line with a collective agreement for the retail sector, to which the e-commerce giant does not adhere.

Amazon could not continue to “refuse wage increases that other companies in the sector pay”, Verdi retail head Orhan Akman said in a statement Monday.

Amazon, which operates 17 centres in Germany, argues it is a logistics company, a sector in which the terms of work are considered to be less burdensome for the employer.

Amazon said it did not expect the strike to have an impact on clients.

However, a Verdi spokesman said the stoppage could cause disruption, particularly in Amazon’s rapid-delivery “Prime” offering.

Strikes were likely to continue “until the end of the year”, the spokesman said, impacting on the busy Christmas shopping period.

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Verdi, which first called for strikes at Amazon in May 2013, organised demonstrations outside the fulfilment centres on Tuesday to protest poor working conditions.

Amazon — which has seen its business boom during the coronavirus pandemic as consumers increasingly shopped online — announced in September that it would open eight new centres in Germany, creating 3,000 jobs by 2022.

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