Leading global MRO business Lufthansa Technik has reported it is on track to hit €1.5 billion in revenues for the first quarter of 2023.

In a trading update issued this week, the firm reported that a pick up in its engine business is helping to drive earnings which are ahead of the previous year.

It also said its recruitment drive is “making progress” and that the firm is on course for success during the current financial year having recorded record results last year.

Lufthansa Technik said, despite “strong headwinds” such as high energy costs and ongoing supply chain challenges, adjusted EBIT earnings have increased five percent year-on-year to €135.2 million in the first quarter.

Increased first quarter revenue puts the company on course to achieve ambitious full-year targets.

For the first time since the Covid-19 crisis, revenue is expected to exceed €6 billion and earnings are expected to come in at €500 million.

Dr William Willms, chief financial officer, said: “With our capabilities, we are optimally positioned between the airlines and the manufacturers. We can proudly say that we are the partner of choice for many customers.”

Lufthansa Technik signed more than 700 new contracts last year amounting to new business worth €9.6 billion and added another 167 contracts in the first quarter of this year.

This included contracts for the maintenance, repair and overhaul of auxiliary power units for Air France’s Airbus A350 fleet and the overhaul of landing gears and aircraft for Emirates’ A380 fleet, as well as increased demand in the engine sector.

“There are significant catch-up effects in the engine sector resulting from the crisis period. In addition, there will be many new engines arriving in the workshops for their first check in the near future,” said Willms.

“All in all, we can say that we are once again on a very good track with engines. And that will remain the case.”

In addition to the classic MRO divisions, Lufthansa Technik is also focussing on digitisation of processes within the company and the services it offers external customers.

It said it plans to further expand its recently introduced Digital Tech Ops Ecosystem, driven by the three digital solutions AVIATAR, AMOS and flydocs, and to support the technical operation of aircraft completely digitally.

The company reported it is also making progress in recruiting new employees. By the end of March 2023, more than 21,000 employees were working for the company.

“We are delighted to welcome the many new employees,” said Willms, “and of course thank all those who are already with the company for their efforts.” The recruitment of a four-digit number of new employees is planned for the full year 2023.