Lufthansa Group's Record Q2 2023 Profits Revealed

The Lufthansa Group has revealed record Q2 earnings as the industry continues to rebound from the pandemic.



August 4, 2023

DALLAS - Lufthansa Group has reported its Q2 2023 results with an adjusted Earnings before interest and taxes (EBI) of €1.1bn (US$1.2bn), up from the €392m (US$429m) for the same period last year. This was the highest ever recorded Q2 results for the group, which includes Lufthansa (LH), Swiss (LX), Austrian Airlines (OS), Brussels Airlines (SN) and Eurowings (EW).

Total revenue increased 17% year-on-year to €9.4bn (US$10.2bn), slightly down on the pre-pandemic €10.2bn (US$11.1bn) reported in 2019. Meanwhile, net income came in at a new high of €881m (US$964m), up from €259m (US$283m) in 2022. It added that it expects an adjusted EBIT for the entire year of at least €2.6bn (US$2.8bn).

Q2 profits have been boosted by all members of the airline group. Photo: Christian Winter/Airways.

Growing Numbers

The group said this was thanks to a significant increase in passenger numbers. Between January and June, the group carried some 55 million passengers, an increase of 30% over the same period last year. It added that forward bookings for the forthcoming winter and next year were already double-digit percentages above last year's numbers and 90% above pre-pandemic levels.

Boosting its numbers, Lufthansa Cargo and Lufthansa Technik also posted positive results. Despite declining demand, the group's freight segment remained profitable, adding an adjusted EBIT of €37m (US$40.5m), down from the €482m (US$527m) last year. Meanwhile, its global maintenance, repair, and overhaul (MRO) arm reported an adjusted EBIT of €156m (US$170m), up 39% from 2022.

D-AEUA Lufthansa Cargo Airbus A321-200P2F MAD LEMD. Photo: Adrian Nowakowski/Airways.

Making Progress

Looking ahead, Carsten Spohr, Chairman of the Executive Board LH Group, said, "In addition to the positive operational and financial development, we have made further significant progress. The second quarter of 2023 was a milestone in the Lufthansa Group's ongoing development into an airline group. We announced three major M&A transactions in just three months. We found new owners for the LSG Group and AirPlus, which offer few synergies with our core business, thus laying the groundwork for a successful future for both companies.

"Our investment in ITA Airways also further strengthens our core business by expanding our market access in Italy and continuing to diversify our business internationally. Our "multi-hub, multi-brand and multi-AOC" strategy offers ideal conditions for the optimal continued development of ITA Airways and the realization of extensive synergies. We are currently preparing to assume joint operational control and make ITA Airways profitable immediately upon after receiving regulatory approvals."

Spohr added that the group will add 30 airframes to its fleet this year "as we continue our fleet modernization." The German flag carrier is also preparing for the conversion of its long-haul fleet to the new "Allegris" cabin. Two more Airbus A380s are scheduled to return to service for LH this year, and new Boeing 787s and Airbus A350s will arrive in 2024.

Featured Image: Lufthansa D-AIXH AIRBUS A350-900 KLAX LAX. Photo: Jinyuan Liu/Airways.