The Lufthansa Group has today reported a full year 2023 net profit of €1.7 billion or €1.40 per share on a year-over-year increase in revenue of 15 percent to €35.4 billion. For Q4 2023, the Group reported a net profit of €67 million €0.06 per share.
On Thursday (March 7, 2024), the Lufthansa Group reported their fourth quarter and full year financial results for the period ending December 31, 2023. The Group reported a fourth quarter net profit of €67 million or €0.06 per share on a year-over year increase in revenue of five percent to €8.8 billion. For the full year 2023, the Group reported a net profit of €1.7 billion or €1.40 per share on an increase in revenue versus FY 2022 of 15 percent to €35.4 billion.
In Thursday’s announcement, Deutsche Lufthansa AG’s Chairman of the Executive Board and CEO, Carsten Spohr, said,
“The Lufthansa Group has regained its financial strength. I would like to thank our customers for their continued loyalty and each and every one of our approximately 100,000 employees. With their above-average commitment, they made 2023 one of the three best years in Lufthansa Group’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. And this year, we also aim to finally return our customers’ satisfaction to premium levels. That is why we are investing the record amount of 4.5 billion euros in new aircraft, in our cabin interiors, lounges, ground processes and in personal and digital services. As part of the largest fleet modernization in our history, we expect to take delivery of at least 30 new aircraft this year, including around 20 long-haul jets for Lufthansa - another record!”
Lufthansa Group's Fourth Quarter and Full Year 2023 Financial Results - Courtesy Deutsche Lufthansa AG
During 2023, Lufthansa Group airlines carried 123 million passengers, an increase of 20 percent compared to 2022. The Group also increased the number of flights offered year-over-year by 14 percent to 946,000. On average, the company's airlines offered 84 percent of 2019 capacity, and achieved a load factor improvement compared to 2022 of approximately 3.1 percent, returning to pre-pandemic levels. All passenger airlines in the Group reported an operating profit for the first time, with SWISS, Austrian Airlines, Brussels Airlines and Eurowings all achieving record results. Lufthansa Technik reported a record full year 2023 operating profit of €628 million, up from €554 million in the previous year.
The Lufthansa Group’s 2023 net CAPEX increased 23 percent year-over-year to €2.8 billion, primarily attributable to the modernization of their fleet through the purchase of new, more fuel-efficient aircraft. At December 31, 2023, the company’s net debt was €5.7 billion, down from €6.9 billion at year-end 2022, thanks to positive free cashflow. The company’s board will propose a dividend of €0.30/share at the AGM on May 7th, 2024, which corresponds to a 4.0 percent yield based on the company’s closing stock price on December 31, 2023.
Also commenting of the Group’s 2023 financial results, Deutsche Lufthansa’s Chief Financial Officer, Remco Steenbergen, said,
“The strong result for the financial year 2023 is another important step in positioning the Lufthansa Group for the future. Our solid balance sheet and strong free cash flow enable us to make the necessary investments in our fleet and our 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 footing. The Lufthansa Group has set itself the goal of continuing to pursue 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.”
In 2024, Lufthansa Group will invest a record €4.5 billion in new aircraft, seats and lounges, along with improved culinary and digital offerings. The Group’s airlines are setting new standards with Lufthansa’s new ‘Allegris’ cabins and ‘SWISS Senses’ at SWISS. Lufthansa guests will be able to enjoy the elevated experience for the first time in May 2024, initially from Munich to Vancouver.
Currently undergoing the largest fleet modernization in the company’s history, in 2024 Lufthansa Group will take delivery of over 30 new aircraft, including a double-digit number of Boeing 787-9 Dreamliners, eight Airbus A350-900s and one Boeing 777F freighter. All of the new long-haul aircraft mentioned will be delivered to Lufthansa Airlines and Lufthansa Cargo. In total, the Group currently has over 250 latest-generation aircraft on order, another company record.
Source: Deutsche Lufthansa AG