Lufthansa Group Reports Record Earnings in Summer Quarter, Foresees Continued Strong Demand
Frankfurt, Germany - The Lufthansa Group has announced a record-breaking summer with an Adjusted EBIT (Earnings Before Interest and Taxes) of EUR 1.5 billion in the third quarter of 2023. This performance marks a significant milestone for the aviation giant, reflecting a robust recovery and strong demand in the air travel sector.
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, attributed this success to the company's multi-airline and multi-hub strategy, along with a focus on private travel segments. He also acknowledged the improved employee satisfaction to pre-crisis levels, emphasizing the collective efforts that contributed to this achievement.
- Total Group revenues increased by 8% to EUR 10.3 billion, making it the strongest quarter in Lufthansa Group's history in terms of revenue.
- The Adjusted EBIT for the third quarter stood at EUR 1.5 billion, a 31% improvement compared to the same period last year.
- Net income for the period saw a substantial rise to EUR 1.2 billion.
- All passenger airlines within the Lufthansa Group significantly increased their results, with a combined Adjusted EBIT of EUR 1.4 billion.
- The Group experienced a 25% increase in yields compared to the third quarter of 2019, reaching a new record high.
- Despite inflationary pressures, unit costs in the third quarter were 0.9% below the previous year's level, thanks to strict cost management and expansion of the flight program.
Customer and Market Growth:
- The Group’s airlines welcomed over 38 million travelers between July and September, a notable increase from the previous year.
- The seat load factor remained broadly unchanged, with over 86% of all seats offered being sold.
- The Lufthansa Group observed a further internationalization of its customer base, with more than 70% of guests starting their journey outside Germany.
Lufthansa Technik and Cargo Performance:
- Lufthansa Technik continued to benefit from high demand for maintenance, repair, and overhaul (MRO) services, achieving an Adjusted EBIT of EUR 168 million for the quarter.
- Lufthansa Cargo, however, faced a normalization in the cargo business, with an Adjusted EBIT of EUR 1 million in a seasonally weak third quarter.
Balance Sheet and Future Outlook:
- The Lufthansa Group generated an operating free cash flow of EUR 1.2 billion in the third quarter.
- Net debt significantly reduced to EUR 5.4 billion, and net pension liabilities decreased to EUR 1.9 billion.
- The Group received an investment grade rating from Fitch, reflecting successful debt reduction and balance sheet strengthening measures.
- Lufthansa Group expects strong demand for air travel to continue, with a positive operating result also anticipated for the fourth quarter of 2023.
- The Lufthansa Group is committed to achieving a neutral CO₂ balance by 2050 and aims to halve its net CO₂ emissions by 2030.
- The introduction of Green Fares on selected intercontinental routes is part of the Group's efforts to promote more sustainable travel.
The Lufthansa Group's performance in the third quarter of 2023 sets a positive tone for the future, with expectations of continued growth and operational efficiency improvements. The company remains mindful of geopolitical and macroeconomic risks and maintains flexibility in its operational strategies.