The Lufthansa Group announced its financial results for 2023, reporting an operating profit of €2.7 billion, the third-highest in the company’s history. Revenue increased by 15% to €35.4 billion, driven by a significant 20% increase in passenger numbers to over 120 million.
“The Lufthansa Group has regained its financial strength,” said Carsten Spohr, CEO of Deutsche Lufthansa AG. “With their above-average commitment, they [employees] made 2023 one of the three best years in Lufthansa Group’s history.”
The group reported a net profit of €1.7 billion, more than doubling from the previous year. The adjusted return on capital employed reached 13.1%, exceeding the 2024 target of 10% a year early.
Lufthansa attributed the strong results to continued high demand for air travel and a record performance from Lufthansa Technik. The passenger airline segment generated an adjusted operating profit of €2 billion, a significant improvement from the previous year’s €300 million loss.
Remco Steenbergen, Chief Financial Officer, stated, “Our solid balance sheet and strong free cash flow enable us to make the necessary investments in our fleet and our product.”
The group plans to invest a record €4.5 billion in 2024 to enhance the customer experience, including new aircraft, cabin interiors, lounges, and digital services. It expects to take delivery of over 30 new aircraft, including around 20 long-haul jets for Lufthansa Airlines.
Lufthansa also announced plans to resume dividend payments, proposing a dividend of €0.30 per share for 2023.
Looking ahead, the group forecasts revenue and operating results for 2024 to be on par with 2023 levels, with an adjusted free cash flow of at least €1.5 billion.
The Lufthansa Group is composed of multiple passenger airlines (Lufthansa, SWISS, Austrian Airlines, Brussels Airlines, Eurowings, among others), Lufthansa Cargo, and Lufthansa Technik.
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