Lufthansa Technik has announced it is heading for another record annual result.
After already achieving a new Adjusted EBIT record of €554 million* last year, the MRO provider is expecting an even better result for the full year 2023.
Lufthansa Technik states it had initially expected an Adjusted EBIT at a comparable level to the previous year, but has now slightly raised its forecast.
The company had already earlier this year reported the best first half-year in its history in terms of earnings.
Dr. William Willms, chief financial officer of Lufthansa Technik, said: “The aviation sector is recovering much faster than expected. This is benefiting us because we are succeeding in exploiting many of the resulting opportunities for us thanks to the great commitment of our employees.
“Our components business in particular had a very strong summer. Material is in great demand on the market.
“We continue to attract customers through better material availability compared with competitors, among other things.”
The company has reported that the bottom line for earnings after the third quarter of 2023 is now an Adjusted EBIT of €459 million (+7 per cent) despite headwinds from the dollar exchange rate and high inflation, while its revenue increased to €4.8 billion (+20 per cent).
Lufthansa Technik states that, as of late September, it had signed more than 580 new contracts this year, compared to approximately 700 in total in 2022.
It also reports that considerable investments are being made in materials and personnel, with the number of employees having now increased to 22,290.
Willms said: “We are in a position to finance all of this thanks to our good earnings.
“Obviously, managing the influx of such a high number of new employees is a strenuous task for many in the company, but these efforts will pay off for us.”
The company has reported that investments in infrastructure are also being driven forward, with construction measures that were halted during the Covid-19 crisis being resumed.
One such example is the construction of a new hydraulics workshop at its Hamburg site where Lufthansa Technik alone is investing a mid-double-digit million sum.
The company is also reporting strong digitisation efforts towards across all business units, with Lufthansa Technik recently announcing the foundation of ViTech, a joint venture with CleverPine AD, a leading provider of software engineering services based in Bulgaria.
* The reporting of one investment has no longer been carried out at Lufthansa Technik since 2023, the previous year’s figure was therefore adjusted accordingly.