Lufthansa Technik has reported a very successful first half of 2023, with revenue and earnings showing an overall increase of more than 20 per cent compared to the same period last year.
Its earnings (adjusted EBIT) increased by €50 million to €291 million euros (+20.7 per cent), which Lufthansa Technik states is the best first half-year in the company’s history.
Revenue up to the end of June was recorded as €3.1 billion, a +20.8 per cent increase over last year’s €2.6 billion.
Dr. William Willms, chief financial officer at Lufthansa Technik, said: “We are continuing on our steady upward path. Of course there are still challenges, given the rapid ramp-up after the Corona crisis. But we are getting better at balancing issues such as inflation, material shortages, strained supply chains and skilled labour shortages with the needs of our customers.
“We mostly succeed in fulfilling the expectations placed on us. Among other things, our customers value our superior material availability compared to that of our competitors.”
Lufthansa Technik states it is investing heavily in materials to safeguard the company’s business for the future, for instance with the increased procurement of Used Serviceable Material (USM). This alone is where the company says investments have doubled compared to the time before the pandemic.
These efforts are also rewarded by successful new business, as the company notes that as of late June, it had signed more than 450 new contracts this year, and around 700 in total in 2022.
Since last summer, Lufthansa Technik’s employees in the Aircraft Component Services segment have been experiencing a steady increase in repair business, and LEAP-1B engines can now also be processed at its Hamburg site – an important step because the Boeing 737 MAX engine is expected to account for the largest market volume in the future.
The company also puts its success down to increased efforts in digitisation across all segments, and its strong recruitment drive – as of mid-July, there has been more than 1,250 new employees this year in Germany alone, taking the total number of employees at Lufthansa Technik to more than 21,500.