Lufthansa Reports Strong Q2 2023 Results

Lufthansa Group has revealed its impressive performance during Q2 2023, setting a new record. However, challenges persist as two of its affiliated airlines continue to operate at a loss.

Among the airlines under Lufthansa Group’s umbrella, Lufthansa, Swiss International Air Lines, and Austrian Airlines have posted positive Earnings Before Interest and Taxes (EBIT) figures. In contrast, Brussels Airlines and Eurowings faced a negative EBIT in the first half of 2023.

Nevertheless, Lufthansa Group is upbeat about its passenger airlines, citing a “positive result” for the period. This optimism is driven by a notable increase in passenger numbers, with a 30% rise compared to the same period in 2022. The airlines accommodated 55 million passengers, up from 42.4 million. While the passenger capacity grew by 19% year-on-year, it remains 21% lower than pre-pandemic levels.

Lufthansa’s capacity management strategy has proven effective, enhancing punctuality to 70% during the first half of the year. This approach aimed to avoid the disruptions experienced by many European airlines in the summer of 2022.

Lufthansa Group’s adjusted EBIT has made a significant turnaround, surging by nearly €1 billion ($1.09 billion). Lufthansa achieved an adjusted EBIT of €812 million ($888 million) in H1 2023, a remarkable shift from the previous year’s negative adjusted EBIT of €185 million ($202.3 million).

The overall revenues for the group reached €17.8 billion ($19.4 billion). Lufthansa Group closed H1 2023 with a net profit of €414 million after tax, despite losses from discontinued operations and minority interests.

Carsten Spohr, the CEO of Lufthansa Group, attributed the positive outcome to the dedication of the company’s workforce. He emphasized the successful implementation of the stability-focused strategy, resulting in improved operations and customer satisfaction.

During this period, Lufthansa Group executed significant strategic moves, divesting its catering unit, LSG Group, and selling its payment subsidiary, AirPlus, to SEB Kort Bank of Sweden. These actions align with the group’s transformation toward becoming a comprehensive airline entity.

Spohr expressed optimism about the company’s future, highlighting the alignment of profit forecasts with medium-term capital market targets. He also announced plans to take joint operational control of ITA Airways, an Italian airline. Lufthansa acquired a 41% stake in ITA Airways for €325 million ($355.2 million) in May 2023, with an option to purchase the remaining shares based on the airline’s performance. This strategic move marks a significant step in Lufthansa Group’s evolution.

In conclusion, Lufthansa Group’s robust Q2 2023 performance showcases its resilience amid challenges, with positive strides made in passenger numbers and profitability.