Lufthansa pegs dividend payout ratio to net profit
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FILE PHOTO: Planes of German air carrier Lufthansa are seen at Germany's largest airport, Fraport, in Frankfurt, Germany, January 14, 2019. REUTERS/Kai Pfaffenbach
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Kai Pfaffenbach(Reuters)
FRANKFURT (Reuters) – German carrier Lufthansa on Monday said it would start pegging its dividend payout ratio to net profit in the future, adding this would give the group, which issued a profit warning a week ago, more flexibility.
Lufthansa said it would pay out a regular dividend of 20-40 of net profit, adjusted for one-off gains and losses, in the future. Its previous dividend policy was based on a payout ratio of 10-25% of earnings before interest and tax.
Shares in Lufthansa were up by 1.8% in early Frankfurt trade, according to data from Lang & Schwarz.
(Reporting by Christoph Steitz; Editing by Michelle Martin)
