Lufthansa Technik grows sales and gross profits by 20 per cent

14 August 2023

Figures for first half of 2023 best in company's history

The Hamburg-based Lufthansa Technik grew its gross profits (EBIT) by EUR 50 million to EUR 291 million while revenue rose to EUR 3.1 billion in the first half of 2023 over EUR 2.6 billion in the same period in 2022, a press release said Thursday (August 3, 2023). The figures represent a rise of over 20 per cent and marked the best first half-year in the company's history. Lufthansa Technik is one of the market leaders in aircraft maintenance, repair and overhaul (MRO).

Competitive edge in availability of material

"We are continuing our steady upward path," said Dr William Willms, Chief Financial Officer. Yet, challenges remain given the rapid ramp-up after the coronavirus crisis. "However, we are getting better at balancing issues such as inflation, material shortages, strained supply chains and skills shortages with our customers' requirements. In the vast majority of cases, we meet the expectations placed on us," he added. Lufthansa Technik relies mainly on used serviceable material (USM) and has doubled investments therein over the pre-pandemic period. That has given the company a competitive edge in terms of material availability.

Growing repair business for aircraft components

Demand for Lufthansa Technik's products has increased, which is reflected by the number of contracts signed. More than 450 new contracts were signed by the end of June 2023, compared to 700 in 2022. The Aircraft Component Services segment has expanded its repair business driven by increased travel this summer. The company expects digital transformation to have a positive effect on earnings in the three-digit million range. Employees are key to maintaining its the position in the MRO market. More than 1,250 new employees have been hired across Germany in the first half of 2023 and the company began training 220 new apprentices this year, bringing its total workforce to over 21,500.

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