Lufthansa reduces debt by 16% to €1.95b

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Lufthansa Group reduced its net debt by 16% to €2 billion ($2.59 billion) for the 2012 financial year.

Liabilities to banks amounted to €1.5 billion up from €1.45 billion in 2011.

Cash and cash equivalents totalled €1.43 billion in 2012, compared with €887 million in the previous year. Securities amounted to €3.53 billion, up from €3.11 billion in 2011.

In the 12-month period, cash flow from operating activities totalled €2.84 billion, €486 million up from the previous year.

Chief financial officer Simone Menne said operating cash generated during 2012 meant Lufthansa was able to finance its necessary capital expenditures directly from the operating business. The group's free cash flow totalled €1.4 billion at year-end.

Lufthansa reported €2.4 billion in capital expenditures during the period. Of this, €1.96 billion paid for fleet modernising plans.

During the year the group took delivery of 44 aircraft including four Boeing 747-8s, two Airbus A380s, six A330s, six A321s, nine A320s, five A319s, two 767s, nine Embraer 195s and one ATR 72.

New borrowing totalled €1.1 billion in 2012 mainly related to loans, several aircraft financing transactions and the issue of a convertible bond for the JetBlue shares held by the group..

For 2013, Lufthansa will take delivery of five 747-8s, one Airbus A330, 22 A320 family aircraft, four Embraer 195s and two 777F units.