Lufthansa Technik significantly increased both revenue and earnings in the financial year 2022 despite what it called a “challenging environment”.
Adjusted EBIT even set a new record at 511 million euros (previous year: 362 million euros, plus 41%). Revenue grew to 5.6 billion euros (previous year: 4.0 billion euros, up 39%), the third-best figure in the company’s history.
The clear recovery of the aviation industry as a whole drove demand for maintenance, repair and overhaul (MRO) of commercial aircraft sharply upward.
The continued systematic pursuit of restructuring, an advantageous US dollar exchange rate and the company’s excellent market positioning also contributed significantly to the financial success.
Strong dynamics
“The strong dynamics of the aviation industry also shaped Lufthansa Technik’s financial year. This has been another year that has demanded everything of us. While we have not quite returned to our former dimensions, we will continue to grow from a position of strength,” says Soeren Stark, Chief Executive Officer of Lufthansa Technik.
“I would like to thank all our employees for their special commitment and their willingness to constantly change and improve our company.”
The record result was achieved in part thanks to the systematic implementation of the development program RISE.
Its measures helped Lufthansa Technik to organize itself more efficiently, simplify processes and reduce expenses in the long term. Despite numerous operational challenges, for example in personnel and supply chains, Lufthansa Technik has succeeded in significantly ramping up operations again.
Close partnership in times of crisis is reflected in sales success
The signs are still pointing to growth: New contracts with a volume of 9.6 billion euros were signed last year. Lufthansa Technik signed a total of 706 new contracts and gained 28 new customers in the process.
As with revenue, the EMEA region (Europe, Middle East and Africa) accounted for almost two-thirds of this new business, more than twice as much as the Americas region and around five times as much as the APAC region (Asia Pacific), where the company nevertheless sees major opportunities for future growth.
“Our success remains founded on the partnership with our customers. And these customers, who we often accommodated in partnership during the Corona crisis despite our own challenges, are now returning the favor with new business and contract renewals,” Stark explained.
“We are the partner of choice for airlines around the world. As a result, we were not only servicing more than 800 customers by the end of 2022, but also again more than 4,200 aircraft, even though we had previously removed hundreds from our order books due to the discontinued business in Russia.”
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