Summary
- Lufthansa’s 2023 financial results marked a historic milestone with all passenger airlines turning profits in the course of the 12 months.
- The airline group reported a revenue increase of 15% YoY, with a net profit of €1.6 billion, greater than double the 2022 figure.
- Because of the robust financial performance, Lufthansa plans to revive dividends for its shareholders.
Lufthansa has announced the group’s 2023 results, indicating that for the primary time ever, all of its passenger airlines were profitable in the course of the 12 months, including Brussels Airlines and Eurowings. The Germany-based company said that top demand and increased capability led to significant revenue growth, contributing to its profitability.
Regaining financial strength
Carsten Spohr, the chief executive officer (CEO) and Chairman of the board of Lufthansa remarked that the group had regained its financial strength in the course of the 12 months, noting that its employees’ above-average commitment resulted in 2023 becoming one in every of the highest three years in Lufthansa’s history.
In total, the airline group earned €35.4 billion ($38.5 billion) of revenue in the course of the 12 months, a rise of 15% 12 months-on-12 months (YoY), ending the 12 months with earnings before interest and taxes (EBIT) of €2.6 billion ($2.8 billion). Lufthansa’s net profit in 2023 was €1.6 billion ($1.7 billion), greater than doubling in comparison with 2022.
![D-AIXE Lufthansa Airbus A350-941](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2023/03/d-aixe-lufthansa-airbus-a350-941-2.jpg)
What A Turnaround: Lufthansa Group Doubles Its Yearly Revenue To €33 Billion
The group’s airlines have reported strong earnings across the board.
Airlines’ profitability
The fundamental carriers throughout the group, namely Lufthansa, Austrian Airlines, Brussels Airlines, Swiss International Air Lines (SWISS), and Eurowings, ended the 12 months with positive EBIT results, which was not the case last 12 months, as some airlines still struggled in 2022.
Photo: Brussels Airlines
In 2022, Austrian Airlines, Brussels Airlines, and Eurowings had a negative EBIT of €1 million ($1.08 million), €75 million ($81.7 million), and €200 million ($217.8 million), respectively. In 2023, the three airlines achieved a positive EBIT of €127 million ($138.3 million), €53 million ($57.7 million), and €241 million ($262.5 million), respectively.
![Lufthansa CityLine](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/01/lufthansa-cityline-1-1.jpg)
Lufthansa City Airlines Reveals Its Initial Destinations
Lufthansa Group’s latest carrier, Lufthansa City Airlines, has released details about its initial destinations.
Nearly a million flights
In keeping with the group, demand for flights had remained high in 2023, with more passengers buying tickets in the course of the 12 months, leading to 123 million travelers boarding the group’s aircraft. In 2022, Lufthansa Group carried 102 million passengers.
Nevertheless, the airline conglomerate also increased its capability by 14%, leading to the airline offering 946,000 flights, with the variety of seats on offer increasing in 2023. Nonetheless, the group’s capability was still in need of levels seen in 2019, with its carriers offering 84% of 2019 capability in 2023.
Photo: Vincenzo Pace I Easy Flying
The airline group took delivery of 29 aircraft, namely 11 Airbus A320neo, seven A321neo, five A350, three 787, and one 777F, offset by 18 retirements. Out of the newly delivered aircraft, five (three A350-900 and two A321P2F converted freighters) were acquired on the second-hand market.
In 2024, Lufthansa Group plans to take delivery of at the very least 30 aircraft, including A320neo, A350, 787, and 777F aircraft. Nonetheless, resulting from the Pratt & Whitney engine issues, the Group warned that, on average, around 20 aircraft will remain on the bottom in 2024, with 64 A320neo family aircraft being affected by the issues.
![A Lufthansa Boeing 747 parked at a gate.](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2023/10/shutterstock_1574540332-3-2.jpg)
Lufthansa Is Pulling Capability Off Other Routes To Satisfy Booming India Demand
Lufthansa has been growing its India operation loads recently with latest flights to Hyderabad and Bangalore.
Rewarding shareholders and employees
Because of the nice financial performance, Lufthansa has proposed restoring a dividend, which could have to be approved on the Annual General Meeting (AGM) in May 2024, of €0.30 ($0.33) per share for 2023. The corporate’s share began the 12 months at €7.78 ($8.48), opening at €7.20 ($7.85) on March 7, 2024.
Photo: Lufthansa Group
Meanwhile, Spohr highlighted that in the course of the 12 months, the group signed multiple labor agreements, leading to increased salaries for its employees, in addition to continuing with the profit-sharing scheme that the airline has had.
Looking forward, Lufthansa expects the strong demand to proceed, with the airline planning to operate at 94% of its 2019 capability, yet it’s going to also concentrate on providing stable services to passengers. Lastly, it warned that in Q1 2024, its EBIT losses can be higher than in 2023 since strikes and declining profits at Lufthansa Cargo will weigh down its earnings.
![Lufthansa Airbus A330 parked at Frankfurt Airport FRA shutterstock_2278487147](https://static1.simpleflyingimages.com/wordpress/wp-content/uploads/2024/03/lufthansa-airbus-a330-parked-at-frankfurt-airport-fra-shutterstock_2278487147.jpeg)
More Disruption: Lufthansa Staff Set To Strike Again On Thursday & Friday
Following previous labor motion, the ver.di union called for tougher measures since its demands weren’t met by Lufthansa.