Lufthansa Group Reports Third Quarter 2023 Net Profit of €1.2 Billion or €1.00 per Share
The Lufthansa Group has reported a third quarter net profit of €1.2 billion or €1.00 per share on a year-over-year increase in revenue of 8.0 percent to €10.3 billion. At September 30, 2023, the Group had total liquidity of €11.1 billion.
On Thursday (November 2, 2023), the Lufthansa Group reported their third quarter financial results for the period ending September 30, 2023. The Group reported a third quarter net profit of €1.2 billion or €1.00 per share on a year-over-year increase in revenue of 8.0 percent to €10.3 billion. For the third quarter, all Group airlines reported double-digit Adjusted EBIT margins. At September 30, 2023, Lufthansa Group had €11.1 billion in total liquidity, and the company has also received an investment grade rating by Fitch.
In Thursday’s announcement, Deutsche Lufthansa AG’s Chairman and Chief executive Officer, Carsten Spohr, said,
“We would like to thank our customers and the employees of the Lufthansa Group for a record summer: With the highest revenue and profit ever achieved in one summer - including an operating profit of 1.5 billion euros in the third quarter alone. All airlines in our Group and Lufthansa Technik contributed to this with double-digit profit margins. At the same time, employee satisfaction in our company has improved significantly to the pre-crisis record level. It is paying off for all of us that we have combined our successful multi-airline and multi-hub strategy with strengthening the private travel segment, setting the right strategic course.
“We have also made significant improvements in operational stability and regularity despite continued challenging conditions. This trend is the basis for meeting our premium and quality standards and those of our customers even more effectively in the future again. Even though the geopolitical situation remains challenging, our booking outlook gives us reason to be positive - not only for a very good Group result this year, but also beyond.”
Also commenting on the Group’ positive third quarter results, Deutsche Lufthansa AG’s Chief Financial Officer, Remco Steenbergen, said,
“It is a great success for the Lufthansa Group that we were able to achieve the second-best quarterly result in history in the third quarter. Despite high inflation, we were able to reduce our unit costs. However, we need to further improve our operational reliability and thus also our productivity and efficiency, which are still below pre-crisis levels. We will work intensively on this in the coming months and in the coming year. We are thus confident in our outlook.”
Lufthansa Group's Nine Month and Third Quarter 2023 Financial Results - Courtesy Lufthansa
Despite inflationary headwinds. The Group’s third quarter unit costs declined 0.9 percent compared to the same period last year. Lufthansa Cargo achieved an Adjusted EBIT of €1.0 billion for the third quarter, up from €331 million in Q3 2022. With increasing demand for MRO services, Lufthansa Technik achieved and adjusted EBIT of €168 million, and a record result for the first nine months of 2023. The Group has also reduced their net debt from €6.9 billion at December 31, 2023, to €5.4 billion at the close of the third quarter. Net pension liabilities have also been reduced by €100 million since year-end 2022.
As previously announced on October 31, 2023, the Lufthansa Group completed the sale of LSG Group to the private equity company Aurelius. The company is also evaluating the sale of a minority stake in Lufthansa Technik and awaits approval from the European Commission to complete the acquisition of a 41 percent equity stake in ITA Airways by early 2024. Third quarter results for select individual Lufthansa Group airlines are available here: Austrian Airlines, Brussels Airlines, SWISS.