Lufthansa Technik AG has reported record earnings for 2019, but also warned that the coronavirus crisis will undoubtedly have an “massive” impact on the maintenance industry.
Revenue rose by 13 per cent to EUR 6.9 billion. Earnings before interest and taxes (adjusted EBIT) grew by around eleven percent to EUR 493 million.
Chairman of the executive board, Johannes Bussmann, warms however that the extent of the effects of the worldwide aviation crisis affecting Lufthansa Technik cannot be anticipated with accuracy, but the impact is already massive.
“The maintenance industry is already suffering from the decline in air traffic.
“The full extent will hit us with a delay, which means a forecast is currently not possible, but first impacts are massive. We have prepared ourselves with a very comprehensive package of measures,” Bussmann assured.
On a positive note, Lufthansa Technik saw strong growth in 2019. In the last financial year alone, the company acquired 25 new customers and signed 625 contracts with new business worth EUR 4.1bn. Compared to 2018, investments increased by 28 percent from EUR 244 million to EUR 313 million.
The strategy of long-term partnerships with engine and component manufacturers (OEMs) reached important milestones with the start of operations at the two joint ventures: XEOS (with GE Aviation) and EME Aero (with MTU Aero Engines) in 2019.
Lufthansa Technik also continued to drive the digitalisation of the industry with its Aviatar platform where more than 30 different modules are now offered to meet the various needs of airlines.
“In the past year, we successfully continued our growth path: More than 5,000 serviced aircraft from more than 850 customers speak for themselves,” explained Bussmann.
“Due to the international nature of our company, we believe that we can cope with the effects of the crisis.”
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