Lufthansa Group achieves €2.7 billion profit by 2023

The Lufthansa Group achieved the third-best financial result in its history in 2023, thanks to continued strong demand for air travel, carrying 123 million passengers and posting a profit of 2.7 billion euros.

With sales up 23% to 35.4 billion euros from 30.9 billion the previous year, and adjusted EBIT of 2.7 billion euros (previous year: 1.5 billion), the Group posted an improved adjusted EBIT margin of 7.6% (previous year: 4.9%). Net profit more than doubled to 1.7 billion euros (previous year: 790 million). The number of passengers carried increased by 20% compared with 2022, with a total of 123 million.

The Group's airlines increased their flight capacity by 14%, to a total of 946,000 flights, and expanded the number of seats available throughout the year. On average, they operated at 84% of their 2019 capacity, with seat occupancy improving to around 83%, returning to pre-crisis levels.

The Group's priority was to ensure stable operations and improve the customer experience, with 98% of flights completed as planned. However, productivity was noticeably below pre-crisis levels, especially for the Lufthansa brand. SWISS, Austrian Airlines, Brussels Airlines and Eurowings all posted record results.

The Group's priority was to ensure stable operations and improve the customer experience, with 98% of flights completed as planned. However, productivity was significantly lower than in the pre-crisis period, especially for the Lufthansa brand. SWISS, Austrian Airlines, Brussels Airlines and Eurowings all achieved record results.

Despite supply chain challenges and rising costs, Lufthansa Technik also posted a record result, with EBIT of €628 million (previous year: €554 million). With its "Ambition 2030" plan, Lufthansa Technik is targeting significant investments in business expansion, global locations and digital business models.

Airfreight demand, after record years, normalized in 2023. Lufthansa Cargo increased its capacity by 7%, mainly thanks to the recovery in passenger air traffic, generating adjusted EBIT of €219 million (previous year: €1.6 billion), representing an operating margin of 7.4%.

Carsten Spohr, CEO of Deutsche Lufthansa AG, expressed his gratitude to customers and the Group's 100,000 or so employees, announcing the distribution of a dividend for the first time since 2019 and profit sharing for employees thanks to advantageous collective agreements.

This announcement comes as ground staff are on strike at various German airports, with Lufthansa anticipating the impact on 200,000 passengers.

Source: Air Journal