Lufthansa Technik (LHT) can look back on a very successful first half of 2023. After a strong start into the year, the MRO company had an even stronger second quarter. The half-year results show an overall increase of more than 20% in revenue and earnings compared to the same period of the previous year.
Earnings (adjusted EBIT) at LHT increased by €50 million to €291 million (+20.7%), the best first half-year in the company’s history. Revenue until the end of June was €3.1 billion (previous year: €2.6 billion, +20.8%).
LHT is investing heavily in materials to safeguard the company’s business for the future. One example here is the increased procurement of Used Serviceable Material (USM), i.e., used parts that can be refurbished and subsequently reused. This alone is where Lufthansa Technik’s investments have doubled compared to the time before the pandemic.
Demand has not only increased in specific areas, but for almost all of Lufthansa Technik’s products. Since last summer, employees in the aircraft component services segment have already been experiencing a steady increase in repair business. The increased travel at present is intensifying this trend. Lufthansa Technik’s second major traditional business unit also has good news to report: effective immediately, LEAP-1B engines can also be processed at the Hamburg site. This step is important because the Boeing 737 MAX engine is expected to account for the largest market volume in the future.
Success is also evident in the digitisation efforts across all segments which are transforming LHT at its core, but which will also have a positive effect on earnings in the triple-digit million range in the future. (£1.00 = €1.16 at time of publication).
