Lufthansa expects full-year operating loss

German airline Lufthansa posted a first-quarter operating loss today that was wider than analysts expected and said it expected…

German airline Lufthansa posted a first-quarter operating loss today that was wider than analysts expected and said it expected the current aviation crisis to result in a full-year operating loss.

Lufthansa posted a first-quarter operating loss of €415 million ($478 million) versus operating profit of €12 million a year earlier. Sales fell 4.6 percent to €3.7 billion.

A Reuters poll of analysts forecast a first-quarter operating loss of €299 million and sales of €3.67 billion.

The airline posted a net loss of €356 million in the quarter, wider than a net loss of €186 million a year ago.

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Europe's third-largest airline by passenger numbers said it was in a "stable financial position" and that net debt in the first quarter was reduced to €1 billion.

The airline, which had warned investors it would post a loss in the first quarter, said the extent of the full-year loss would depend on further development of factors contributing to the aviation crisis - the SARS virus, the sluggish economy and tensions in the Middle East.

The airline said earlier this week its passenger traffic in April fell 2.8 per cent year-on-year, with traffic to the Asia/Pacific region down nearly 20 per cent.

Lufthansa has cut staff working hours and grounded planes to offset the slump in demand.