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Lufthansa Group Reports FY2022 Net Profit of €791 Million or €0.66 per Share

The Lufthansa Group has today reported A FY2022 net profit of €791 million or €0.66 per share on a year-over-year increase in revenue of 95 percent to €32.8 billion. At December 31, 2022, the Group had total available liquidity of €10.4 billion.


Lufthansa Group Reports FY2022 Financial Results - Courtesy Lufthansa Group

On Friday (March 3, 2023), The Lufthansa Group reported their financial results for the period ending December 31, 2022. The Group reported a net profit of €791 million or €0.66 per share om a year-over-year increase in revenue of 95 percent to €32.8 billion. For FY2022, the company generated an adjusted EBIT of €1.5 billion, compared to €-1.7 billion during the previous year. Lufthansa Group’s Adjusted EBIT margin also improved to 4.6 percent, versus -9.9 percent in FY2021. At December 31, 2022, the company had total available liquidity of €10.4 billion. In 2022, the Group carried 102 million guests, more than twice as many as passengers carried in 2021. Additionally, both Lufthansa Cargo and Lufthansa Technik achieved record results.


In Today’s announcement, Deutsche Lufthansa AG’s CEO, Carsten Spohr, said,


“Lufthansa is back. In just one year, we have achieved an unprecedented financial turnaround. With an operating profit of 1.5 billion euros, the Lufthansa Group has achieved a much better result than expected. Demand for air travel remains high in 2023. We are investing billions in new fuel-efficient and state-of-the-art aircraft. With innovative services, a new premium cabin on board, and new digital tools, we want to remain the quality and innovation leader in our industry. Likewise, it is our ambition to drive forward effective climate protection, for example by being the first airline group worldwide to introduce Green Fares. The Lufthansa Group is already number one in Europe and number four worldwide. For our guests and our employees, we want to continue to grow, shape the future and expand our market position.”


Lufthansa Group's FY2022 Financial Results - Courtesy Lufthansa Group

Overall Group passenger airline capacity for 2022 was 72 percent compared to pre-pandemic levels, while the company’s load factor was up 18.2 percent versus 2021 to 79.8 percent. Lufthansa Group’s passenger airline revenue increased year-over-year by 148 percent to €22.8 billion. SWISS and Austrian Airlines also generated an operating profit for FY2022 with adjusted EBIT of €476 million, and €3.0 million respectively.


Lufthansa Cargo achieved a record result for 2022, with a 22 percent increase in sales to €4.6 billion, and an adjusted increase in EBIT to €1.6 billion. Overall, Lufthansa Cargo reported sales of 7.2 billion freight ton kilometers, similar to 2021, while capacity utilization decreased 9.9 percent year-over-year to 61.1 percent, on a capacity supply increase of 17 percent to to 11.8 billion FTKs.


In a separate press release from Lufthansa Cargo on Friday (March 3, 2023), Lufthansa Cargo’s Chairperson of the Executive Board and CEO of Lufthansa Cargo, Dorothea von Boxberg, said,


Lufthansa Cargo Achieves Recor Result, Third Time in a Row - Courtesy Lufthansa Cargo

“In the past fiscal year, we achieved a record result for the third time in a row. We owe this to the high level of commitment of our employees and the trust of our customers and partners. In addition, we again had significantly more capacity in the market due to the growth in long-haul passenger traffic. We notice that our customers continue to serve their global supply chains. With more freighters and more bellies, we will continue to be a strong and reliable partner for our customers.


“We are looking ahead to the fiscal year of 2023 with confidence. The environment remains dynamic. But we are convinced that we are excellently positioned and can respond flexibly and quickly to changes in the market. We are consistently pursuing our successful strategy. We are expanding our digital services and offering our customers more and more sustainable solutions. We will also be successful in 2023”


Lufthansa Technik, the Group’s MRO business, also reported a record FY2022 result with an Adjusted EBIT improvement of 41 percent versus FY2022 to €511 million. The Catering segment faced headwinds from high inflation and the tight labor market in North America. Nevertheless, LSG group’s revenue increased by nearly 80 percent versus 2021 (excluding 2021 US CARES ACT subsidies). LSG’s FY2022 Adjusted EBIT loss totaled €-11.0 million.


During FY2022, Lufthansa Group’s net CAPEX totaled €2.3 billion, lower than expected due to a delay in planned aircraft deliveries. The company’s adjusted free cash flow reached an all-time high of €1.5 billion, compared to €-1.0 billion in the previous year. The Group has also decided to maintain liquidity in the range of €8.0 to €10.0 billion, to protect the company from potential future crises.

Speaking on Lufthansa Group’s strong balance sheet, Deutsche Lufthansa AG’s Chief Financial Officer, Remco Steenbergen, said,


“I have always made it clear that returning to a strong balance sheet was one of our top priorities in overcoming the crisis. Only a strong balance sheet provides the resilience needed to invest in the future of our business and to manage future crises. That is why I am extremely pleased with the progress made last year. We remain firmly committed to generating consistently strong free cash flows and continuing the deleveraging in 2023 and beyond.”


Lufthansa Group has nearly completed their ambitious transformation and cost reduction program, which aims to reduce structural costs by €3.5 billion annually by 2024. At the end of FY2022, the Group had already reduced their annual structural cost base by €3.2 billion. The company also continues to evaluate the sale of non-core assets, including AirPlus and LSG’s remaining catering business, following the sale of the European part. Additionally, preparations for a potential partial divestiture of Lufthansa Technik are progressing.



Source(s): Lufthansa Group, Lufthansa Cargo

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