In 2023, the global airline industry encountered challenges and opportunities. Adapting to post-COVID travel norms, airlines faced uncertainty. However, as travel restrictions eased, passenger demand was resurgent, resulting in a substantial increase in revenue, driven primarily by higher ticket sales. This positive development marks a significant step towards recovery and improvement, reflecting the continued profitability of Lufthansa’s financial performance in second quarter of 2023.
Lufthansa Airlines’ Financial Performance
In the first quarter of 2023, flight demand experienced further recovery following the Coronavirus pandemic. Despite the impact of Omicron variants on demand, earnings were significantly improved compared to the previous year. Lufthansa Group’s revenue in the first quarter of 2023 increased by 40% YoY to EUR 7,017m. However, there was a negative Adjusted EBIT of EUR -273m and a negative Adjusted EBIT margin of -3.9%, which still marked a substantial improvement.
Lufthansa (LHAG.DE) reported an “unprecedented” turnaround, swinging to a 1.51 billion euro profit in 2022. The airline expects further improvements this year, which have already driven its shares to a 3-year high. In addition, net revenue almost doubled from 2021.
In a statement, CEO Carsten Spohr said: “Lufthansa is back. In just one year, we have achieved an unprecedented financial turnaround … Demand for air travel remains high in 2023,” he added.
Lufthansa Airlines’ achieves record result in second quarter of 2023
Even in 2022, Lufthansa Group experienced robust revenue growth, nearly doubling to 32.8 billion euros, up from 16.8 billion euros the previous year, driven by a significant increase in passenger traffic and higher yields. Looking ahead to 2023, the Group has revised its outlook for the full year, anticipating an Adjusted EBIT exceeding 2.6 billion euros, showcasing one of the best results in the company’s history. This positions 2023 as a critical year in achieving Lufthansa Group’s financial target for 2024. The company aims for an Adjusted EBIT margin of at least 8 percent and an Adjusted Return on Capital Employed (Adjusted ROCE) of over 10 percent.
The news bodes well for Lufthansa Airlines’ financial performance, with CEO Carsten Spohr expressing optimism and high hopes for the company’s future prospects. As we embark on this intriguing journey, significant accomplishments and improvements in Lufthansa Airlines’ financial performance have already been witnessed.
Based on their recovery efforts and challenges during the pandemic, how do you rate Lufthansa Airlines’ financial performance? How would you rate Lufthansa Airlines’ financial performance? We would like to hear your thoughts
