Lufthansa Technik's international growth continues in 2016

Lufthansa Technik, headquartered in Hamburg, continued its track record for international growth in 2016 and produced a good result with significantly more investment. The increase in revenue with non-group companies overcompensated the decline in internal orders. Sales revenue climbed by €45m from €5.099bn to €5.144bn. The company achieved earnings before interest and tax (adjusted EBIT) of €411.3m (previous year: €454.4m). Business with customers outside the Lufthansa Group grew disproportionately. External revenue from outside the Group grew by 8% to €3.5bn. Revenue from group companies fell significantly, declining 11.7% to €1.6bn, because of the finalization of the modification program for the Lufthansa long-haul fleet. Revenue grew disproportionately in the growth regions of Asia and the USA. The substantial growth in revenue in the American market that was seen in 2015 continued unabated in 2016, with growth of 14% and revenue of around €900m. In Asia, Lufthansa Technik achieved even higher growth of 23%. With revenue now at around €600m, this market is rapidly gaining in importance for the company. Lufthansa Technik invested more than €216m in development to secure its own future, some 40% more than in 2015. Major areas of focus were innovation and product development, new technologies, mastering new materials, the automation of repair processes, and digitalization. The company established its new “Digital Fleet Solutions” division in Hamburg. Last year also saw expenditure of around €200m to expand the material pool.