Financial result

The financial result of EUR 132m was well below the previous year’s figure of EUR 488m. In 2011 it was made up of a positive result from equity investments of EUR 901m (previous year: EUR 889m), negative net interest of EUR 416m (previous year: EUR 137m) and other financial items of EUR –353m (previous year: EUR –264m).

Compared with the previous year the result from equity investments was virtually unchanged. The increase of EUR 12m is the net balance of income from equity investments with (EUR –240m) and without (EUR +252m) profit and loss transfer agreements. Income from equity investments without profit and loss transfer agreements went up because of higher dividends from Air Trust (EUR 309m) and the Lufthansa SICAV-FIS fund of funds (EUR 46m). The profit transferred by Eurowings GmbH fell sharply by contrast (EUR 2m). In addition, EUR 47m was transferred from the 13 Austrian leasing companies. Lower results than in the previous year from Lufthansa Cargo AG (EUR 233m), Lufthansa Technik AG (EUR 175m), LSG Lufthansa Service Holding AG (EUR –3m), Lufthansa Commercial Holding GmbH (EUR 46m) and Lufthansa CityLine GmbH (EUR –33m) had a negative effect on income from profit and loss transfer agreements. They were not made up for by the higher income from Lufthansa Systems AG (EUR 24m), Lufthansa Flight Training GmbH (EUR 27m) and Delvag Luftversicherungs-AG (EUR 19m).

In the financial year net interest came to EUR –416m (previous year: EUR –137m). Lower interest income resulted mainly from netting within the Group. Higher interest expenses stem from new borrowing and above all from accrued interest on provisions (EUR 321m) and the negative change in the market value (EUR –17m) of assets used to fund retirement benefit obligations.

Impairments on investments and current securities were EUR 89m higher than the previous year at EUR –353m. This is particularly due to write-downs on financial investments totalling EUR 353m (previous year: EUR 264m), including EUR 278m on the carrying amount for LHBD Holding Limited, EUR 60m on the carrying amount for Eurowings GmbH and EUR 13m on the carrying amount for the stake in SN Airholding SA/NV.

Extraordinary result

Deutsche Lufthansa AG has exercised its statutory option to recognise the obligation of EUR 462m arising from the revaluation of its pension obligations for retirement and transitional benefits as of 1 January 2010 in profit and loss over a period of 15 years. The ensuing expenses for 2011 of EUR 35m are included in the extraordinary result mentioned above. The extraordinary result, financial result and operating result combine to make up a pre-tax loss of EUR –72m (previous year: pre-tax profit of EUR 681m).

Positive distributable earnings after transfer of retained earnings

Deducting taxes of EUR 44m resulted in a net loss for the year of EUR 116m in 2011. After transferring EUR 230m from retained earnings, Deutsche Lufthansa AG reported distributable earnings of EUR 114m.

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