All Lufthansa Airlines Were Profitable In 2023

Lufthansa has announced the group’s 2023 results, indicating that, for the first time ever, all of its passenger airlines were profitable during the year, including Brussels Airlines and Eurowings. The Germany-based company said that high demand and increased capacity led to significant revenue growth, contributing to its profitability.

Regaining financial strength

Carsten Spohr, the chief executive officer (CEO) and Chairman of the board of Lufthansa remarked that the group had regained its financial strength during the year, noting that its employees’ above-average commitment resulted in 2023 becoming one of the top three years in Lufthansa’s history.

“This success benefits everyone. We want to pay our shareholders a dividend for the first time since 2019. We are also giving our employees a share in our good results development through significantly above-average collective wage agreements and profit-sharings.”

In total, the airline group earned €35.4 billion ($38.5 billion) of revenue during the year, an increase of 15% Year-on-Year (YoY), ending the year with earnings before interest and taxes (EBIT) of €2.6 billion ($2.8 billion). Lufthansa’s net profit in 2023 was €1.6 billion ($1.7 billion), more than double compared to 2022.

Airlines’ profitability

The main carriers within the group, namely Lufthansa, Austrian Airlines, Brussels Airlines, Swiss International Air Lines (SWISS), and Eurowings, ended the year with positive EBIT results, which was not the case last year, as some airlines still struggled in 2022.

Photo: Brussels Airlines

In 2022, Austrian Airlines, Brussels Airlines, and Eurowings had a negative EBIT of €1 million ($1.08 million), €75 million ($81.7 million), and €200 million ($217.8 million), respectively. In 2023, the three airlines achieved a positive EBIT of €127 million ($138.3 million), €53 million ($57.7 million), and €241 million ($262.5 million), respectively.

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Nearly one million flights

According to the group, demand for flights remained high in 2023, with more passengers buying tickets during the year, resulting in 123 million travelers boarding the group’s aircraft. In 2022, the Lufthansa Group carried 102 million passengers.

The airline conglomerate also increased its capacity by 14%, resulting in 946,000 flights, with the number of seats on offer increasing in 2023. However, the group’s capacity was still short of levels seen in 2019, with its carriers offering 84% of 2019 capacity in 2023.

Photo: Vincenzo Pace I Simple Flying

The airline group took delivery of 29 aircraft, namely 11 Airbus A320neos, seven A321neos, five A350s, three Boeing 787s, and one 777F, offset by 18 retirements. Out of the newly delivered aircraft, five (three A350-900s and two A321P2F converted freighters) were acquired on the second-hand market.

In 2024, Lufthansa Group plans to take delivery of at least 30 aircraft, including A320neo, A350, 787, and 777F aircraft. However, due to the Pratt & Whitney engine issues, the Group warned that, on average, around 20 aircraft will remain on the ground in 2024, with 64 A320neo family aircraft being affected by the problems.

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Rewarding shareholders and employees

Due to the great financial performance, Lufthansa has proposed restoring a dividend, which will have to be approved at the Annual General Meeting (AGM) in May 2024, of €0.30 ($0.33) per share for 2023. The company’s share began the year at €7.78 ($8.48), opening at €7.20 ($7.85) on March 7, 2024.

Photo: Lufthansa Group

Meanwhile, Spohr highlighted that during the year, the group signed multiple labor agreements, resulting in increased salaries for its employees, as well as continuing with the profit-sharing scheme that the airline has had.

Looking forward, Lufthansa expects the strong demand to continue, with the airline planning to operate at 94% of its 2019 capacity; yet it will also focus on providing stable services to passengers. Lastly, it warned that in Q1 2024, its EBIT losses would be higher than in 2023 since strikes and declining profits at Lufthansa Cargo will weigh down its earnings.

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