Lufthansa Group

Lufthansa Group reports record Summer with strong earnings and high demand

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The Lufthansa Group has announced a record-breaking summer with an Adjusted EBIT of EUR 1.5 billion in the third quarter, reflecting strong demand for air travel. Key highlights of a press release issued today include:

  • Passenger airlines within the Lufthansa Group carried 38 million travellers between July and September, demonstrating strong demand across various traffic regions.
  • All Group airlines reported double-digit third-quarter Adjusted EBIT margins, contributing to the robust financial performance.
  • The Group experienced a 31 percent improvement in the third-quarter Adjusted EBIT compared to the previous year, reaching an operating result of EUR 1.5 billion.
  • Strong demand, higher capacity, and high yields were the primary drivers behind the increased earnings, with yields reaching a new record high.
  • Despite rising costs due to inflation, unit costs in the third quarter improved by 0.9 percent compared to the prior year.
  • The Lufthansa Group recorded a total third-quarter capacity increase of 13 percent compared to the previous year.
  • Lufthansa Technik benefited from increased demand for maintenance, repair, and overhaul (MRO) services, achieving an Adjusted EBIT of EUR 168 million in the third quarter.
  • The Group’s balance sheet was strengthened, with lower net debt and improved liquidity.
  • The Lufthansa Group was awarded an investment grade rating by Fitch, becoming the first of the three leading rating agencies to do so following the COVID pandemic.
  • The Group is focused on transforming into a global airline group, with various strategic initiatives in progress.
  • The Lufthansa Group is committed to reducing its carbon emissions and is introducing Green Fares, which involve offsetting flight-related CO? emissions with Sustainable Aviation Fuel (SAF) and climate protection projects.
  • The outlook for the Lufthansa Group remains positive, with strong demand for air travel expected to continue in the coming months. The Group anticipates achieving a positive operating result in the fourth quarter of 2023 and an Adjusted EBIT of more than EUR 2.6 billion for the year.
  • For 2024, the Lufthansa Group plans to increase capacity to around 95 percent of pre-crisis levels, with a targeted Adjusted EBIT margin of at least 8 percent.

The press release highlights the Lufthansa Group’s financial strength, operational performance, and commitment to sustainability amid ongoing challenges in the aviation industry.

This post was published on 2 November 2023 17:19

André Orban

M. Sc. Engineering

Published by
André Orban

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