In the "Corona year" 2020, the turnover of Lufthansa Technik AG fell by 43 percent to 3.747 million euros. The crane's maintenance daughter has been hit hard by the pandemic. The adjusted EBIT fell into the red to -383 million euros.

From the second quarter of 2020, the pandemic temporarily led to the extensive cessation of global air traffic and thus to extensive shutdowns and the phasing out of commercial aircraft as well as to the postponement of maintenance events. As a result, demand for MRO services (Maintenance, Repair & Overhaul) on aircraft, engines and components collapsed massively. Lufthansa Technik felt this development in the capacity utilization of its workshops. Temporarily, this even fell by more than half in certain business areas, for example in the areas of Engines and Component Services.

As a result, the company had to reduce its workforce: including external staff, the number of employees worldwide has already fallen by more than 3.000 in the course of the crisis, a reduction of 12,5 percent compared to 2019. This also includes around 1.900 temporary workers worldwide and temporary workers. If you only look at the company’s own staff, the number fell by five percent year-on-year to 22.745 (year-end 2019: 23.855). Numerous investments also had to be stopped or postponed. The expenses for this were therefore significantly lower at EUR 152 million (previous year: EUR 313 million).

“2020 was the most difficult year in our company’s history so far. And yet we can conclude it with a certain degree of confidence," said CEO Johannes Bussmann. “Our broad product portfolio and our international network have protected us from even worse. We have been able to keep almost all of our customers loyal to us. The partnerships, some of which have lasted for many years, have proven to be stable, and despite everything, we were able to win numerous new orders. Given the circumstances, we made the best of this year.”

Future program RISE should lead out of the crisis

In addition to the liquidity protection measures taken in spring 2020, such as short-time work, hiring freezes and material cost reductions, Lufthansa Technik launched the RISE program for the future in the second half of 2020. Its aim is to secure the company's leading position in the MRO market. To this end, Lufthansa Technik is primarily striving for improved competitiveness with RISE.

Among other things, the structure is to become leaner and more efficient. It is to be adapted to the new challenges that have arisen in the course of the Corona crisis and to a permanently changed MRO market. Instead of the previous eight business areas, there will only be five in the future: Aircraft Component Services, Aircraft Maintenance Services, Digital Fleet Services, Engine Services and Original Equipment & Special Aircraft Services.

"As long as the corona crisis is not under medical control, I cannot reliably estimate when the aviation and MRO industries will find new strength," explained Dr. Bussmann. "I also know that we are asking a lot of our employees with the necessary measures in these times. However, I am deeply convinced that these measures will give us the strength with which we can finally successfully leave the crisis behind us".