The Lufthansa Group was able to achieve an operating profit of 2023 billion euros in the 2,7 financial year, making it the third-best financial result in the company's history. Sales grew by 15 percent to 35,4 million euros. Group-wide, the number of passengers carried increased by 20 percent to 120 million.

In the 2023 financial year, the Lufthansa Group achieved the third-best financial result in its history due to the continued high demand for air travel and another record result from Lufthansa Technik. Sales increased to 35,4 billion euros (previous year: 30,9 billion euros). The operating profit, measured as Adjusted EBIT, rose to 2,7 billion euros (previous year: 1,5 billion euros). The adjusted EBIT margin improved accordingly to 7,6 percent (previous year: 4,9 percent). The company doubled its consolidated profit to more than 1,7 billion euros (previous year: 791 million euros). The return on capital employed (ROCE) rose by 5,5 percentage points to 13,1 percent (previous year: 7,6 percent). A year earlier, it corresponded to the target of a return of at least ten percent set for 2024.

Demand for tickets increased again. In 2023, a total of 123 million passengers flew with the Lufthansa Group airlines, an increase of 20 percent compared to the previous year (2022: 102 million). The airlines of the Lufthansa Group increased the number of flights offered by 14 percent to 946.000. The range of seats was gradually expanded over the course of the year. On average, airlines offered 84 percent of the capacity in 2019 last year. The seat load factor improved by 3,1 percentage points to around 83 percent, bringing it back to pre-crisis levels.

“The Lufthansa Group has regained its financial strength. I would like to thank our guests for their loyalty once again and to each and every one of our approximately 100.000 employees. With their above-average commitment, they made last year one of the three best in the history of the Lufthansa Group. This success benefits everyone. We want to pay our shareholders a dividend for the first time since 2019. We also involve our employees in this good development through significantly above-average collective bargaining agreements and profit sharing. And this year we finally want to bring our guests' satisfaction to a premium level again. We are therefore investing a record sum of 4,5 billion euros in new aircraft, in our cabin furnishings, lounges, ground processes and in personal and digital services. As part of the largest fleet modernization in our history, we expect the delivery of at least 30 new aircraft this year, around 20 of which will be long-haul jets for Lufthansa – that is also a record,” said CEO Carsten Spohr.

High demand and high ticket prices ensure high sales

When planning capacity, the priority was to ensure stable flight operations and the associated improvement of the customer experience. 98 percent of all flights took place as planned. However, the necessary buffers led to significantly lower productivity, especially for the Lufthansa core brand, compared to the pre-crisis level of 2019. 

The high demand and the expanded supply led to significant sales growth for passenger airlines. Revenues rose to 2023 billion euros in the 28,3 financial year (previous year: 22,8 billion euros). Average revenues continued to develop positively and were around six percent higher than the previous year. The continued strong demand in the private travel segment was key to the good development, particularly in the premium classes and during the record travel summer. Business travel, on the other hand, continued to recover more slowly.

The adjusted EBIT of the passenger airlines improved significantly in the past financial year, despite high cost inflation. It was again clearly positive at 2,0 billion euros (previous year: -300 million euros). For the first time, all of the group's passenger airlines reported an operating profit. SWISS, Austrian Airlines, Brussels Airlines and Eurowings each achieved record results.

Lufthansa Technik with record results

Demand for maintenance, overhaul and repair services as well as other products from Lufthansa Technik remained high in the 2023 financial year. Despite tense supply chains and rising material and personnel costs, Lufthansa Technik again achieved record results in 2023. The operating profit for the last financial year was 628 million euros (previous year: 554 million euros). For the coming years, Lufthansa Technik is planning comprehensive investments in the expansion of its core business, the expansion of locations and the expansion of digital business models with the “Ambition 2030” growth program.

Demand for air freight has largely returned to normal in 2023 after the exceptional record years. Lufthansa Cargo's offerings increased by seven percent compared to the previous year, primarily due to the further recovery in passenger air traffic and the associated expansion of freight capacities in passenger aircraft. Lufthansa Cargo generated an adjusted EBIT of 219 million euros in the financial year (previous year: 1,6 billion euros), which corresponds to a continued strong operating margin of 7,4 percent.

Shareholders should receive dividends

Due to the positive free cash flow, net loan debt fell significantly to 5,7 billion euros (previous year: 6,9 billion euros), which was around one billion euros below the pre-crisis level. Net pension obligations increased by 60 million euros to 683 billion euros (December 2,7, 31: 2022 billion euros) due to the valuation interest rate falling by 2,0 basis points.

For the first time since the corona pandemic, shareholders should again have a direct share in the company's results. For the 2023 financial year, the Executive Board and Supervisory Board will propose a dividend of EUR 7 per share to the Annual General Meeting on May 2024, 0,30. This corresponds to a dividend yield of around four percent of the share price at the end of the year. The proposed payout follows the Lufthansa Group's dividend policy, according to which between 20 and 40 percent of consolidated profits are distributed to shareholders.

“The strong results for the 2023 financial year are another important step in positioning the Lufthansa Group for the future. Our stable balance sheet and strong free cash flow enable us to make the necessary investments in our fleet and product. I am convinced that these investments will pay off – for our customers, but also for our shareholders. Over the past three years, I have had the privilege of supporting the company in overcoming the crisis and putting the group back on a solid financial basis. The Lufthansa Group has set itself the goal of continuing on the path of profitable growth in order to increase the operating margin in the long term and continue to create value in the future. I am particularly pleased that we can once again allow our shareholders to participate in our success by resuming dividend payments,” said Remco Steenbergen, CFO of Deutsche Lufthansa AG.

The Lufthansa Group is currently completing the largest fleet modernization in its history. In the current year, the company is receiving a total of more than 30 new aircraft, including around 20 long-haul jets. A double-digit number of Boeing 787-9 “Dreamliners”, eight Airbus A350-900s and a Boeing 777 freighter will be delivered to the company. In the future, all of these long-haul aircraft will fly for Lufthansa Airlines or Lufthansa Cargo. Never before have so many new long-haul aircraft been handed over to Lufthansa in one year as this year. In total, the Lufthansa Group currently has over 250 of the latest generation aircraft on the order list.

Demand is expected to remain high

The Lufthansa Group expects demand for airline tickets to continue to rise this year. Demand is already high again, especially for air travel during the Easter and summer holidays. Despite the expansion of capacity, the booked load factors for the next three months are currently higher than last year. The most popular destinations are Spain, Italy, Greece and other Mediterranean countries. The group's passenger airlines also continue to record high demand for connections to and from North America.

Due to strong demand, the group is continuing to expand the capacities of its passenger airlines. However, the focus in 2024 will also be on stable flight operations in order to further improve regularity and punctuality. For the year as a whole, the Lufthansa Group expects an average capacity offering of around 94 percent compared to 2019. This corresponds to growth of around twelve percent compared to the previous year. Group sales are expected to increase significantly in the 2024 financial year. The passenger airlines' unit revenues are expected to be stable or slightly down compared to the previous year, and unit costs are expected to remain stable. The adjusted EBIT of the passenger airlines is therefore expected to be at the same level as the previous year, as is the operating result in the logistics and technology business areas. The group's operating result (Adjusted EBIT) is also expected to be at the 2023 level. The group remains committed to its goal of sustainably generating an adjusted EBIT margin of at least eight percent. Adjusted free cash flow is expected to reach at least 1,5 billion euros. Net investments are expected to amount to 2,5 to 3 billion euros. Higher gross capital expenditures are partially offset by inflows from sale and leaseback transactions.