Growing from a position of strength: Lufthansa Technik posts robust financial results for 2022

Lufthansa Technik has reported a record adjusted EBIT result in financial year 2022, while posting its third-best revenue figure.

Adjusted EBIT exceeded half a billion for the first time, at €511 million, which was a 41 per cent increase on the previous year.

Revenue grew to €5.6 billion, a 39 per cent increase on the previous year.

New contracts with a volume of €9.6 billion were signed in 2022. Lufthansa Technik signed a total of 706 new contracts and gained 28 new customers in the process. As with revenue, the EMEA region (Europe, Middle East and Africa) accounted for almost two-thirds of this new business, more than twice as much as the Americas region and around five times as much as Asia Pacific, where the company is pursuing “major opportunities for future growth”.

Lufthansa Technik said that the “clear” recovery of the aviation industry as a whole drove demand for MRO of commercial aircraft “sharply upward”. The company said its continued systematic pursuit of restructuring, an advantageous US dollar exchange rate, and its “excellent market positioning” also contributed significantly to the financial results.

“The strong dynamics of the aviation industry also shaped Lufthansa Technik’s financial year. This has been another year that has demanded everything of us. While we have not quite returned to our former dimensions, we will continue to grow from a position of strength,” said Lufthansa Technik’s chief executive officer Soeren Stark (pictured above). “I would like to thank all our employees for their special commitment and their willingness to constantly change and improve our company.”

Lufthansa Technik said its ‘RISE’ programme had been an important factor in shaping its positive results, with measures adopted under the programme helping the MRO company “to organise itself more efficiently, simplify processes and reduce expenses in the long term. Despite numerous operational challenges, for example in personnel and supply chains, Lufthansa Technik has succeeded in significantly ramping up operations again.”

Stark said that the company’s success was “founded on the partnership with our customers”. He added: “These customers, who we often accommodated in partnership during the Corona crisis despite our own challenges, are now returning the favour with new business and contract renewals. We are the partner of choice for airlines around the world. As a result, we were not only servicing more than 800 customers by the end of 2022, but also again more than 4,200 aircraft, even though we had previously removed hundreds from our order books due to the discontinued business in Russia.”

Contracts with the Lufthansa Group’s airlines accounted for roughly one-third of new business last year; two-thirds came from customers outside the group.

Looking ahead, Lufthansa Technik expects the global MRO market not only to reach but to surpass its pre-Covid level as early as this year, with a total volume of around €96 billion. The forecast market volume will be distributed evenly across the three sales regions of the Americas, EMEA and APAC, it said.

“There’s no reason why we shouldn’t have the same presence in the Americas and APAC as we do in EMEA,” Stark said. “Regardless of regions, I’m happy to say: We are well prepared for a market that is as attractive again now as it was before the crisis.”

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