Financial Data

Lufthansa Technik significantly increased both revenue and earnings in the financial year 2022 - despite a challenging environment.  Adjusted EBIT even set a new record at 511 million euros (previous year: 362 million, up 41%). Revenue grew to 5.6 billion euros (previous year: 4.0 billion, up 39%), the third-best figure in the company's history.

"The strong dynamics in the aviation industry also shaped our fiscal year. It was a year that once again demanded everything of us. I would like to thank all our employees for their special commitment and their willingness to constantly change and improve our company," says Soeren Stark, CEO of Lufthansa Technik. "While we have not quite returned to our former dimensions, we will continue to grow from a position of strength." Increased demand for maintenance, repair and overhaul of aircraft and aircraft parts contributed significantly to the financial success. 

A favorable US dollar exchange rate also played its part. And, of course, the great dedication of the Lufthansa Technik team: Despite all the challenges, such as difficulties in the supply chains and a lack of personnel in many areas, the company succeeded in bringing operations significantly up. 

In addition to the still strained global supply chains in some areas, the management sees the continuing shortage of specialist personnel as the greatest current challenge in coping with the enormous customer demand. The recruiting offensive launched in the second half of last year has gone some way toward countering the personnel shortage. In Germany alone, for example, Lufthansa Technik 2022 succeeded in filling more than 2,100 vacancies both internally and externally. The truth is, however, that this essentially compensated for departures of a similar amount. The company plans to hire another 2,000 new employees in Germany this year, and in total about 4,000 worldwide.

Investments are therefore being made in the workforce as well as in the equipment of the sites. While there was only a slight increase of 4 percent in total investment of 99 million euros in the past fiscal year, a much higher level of capital expenditure is planned for the coming years. An enormous share of the investments will be allocated to measures for comprehensive digitization. In the "Digitize the Core" program alone, more than 90 million euros has been budgeted up to the end of 2026.

Just under 70 million euros has been earmarked for the continued construction of a hydraulics workshop in Hamburg, which was suspended during the pandemic and is now scheduled for completion by 2025. Until then, the new VIP interior workshops with adjoining paint center will be built at the same location, which involves the investment of a high-double-digit million euro sum. There will be further investments of this magnitude in the expansion of overhaul capacities for the CFM LEAP engine type and in demand-driven repair solutions (Mobile Engine Services, or MES for short) by 2026.

After the inauguration last year of a new, significantly larger repair station outside Dublin for these services, which have recently been in increasing demand, the MES network will soon be expanded to include a sixth international location. Investments are also being made in aircraft maintenance. Preparations are underway at Lufthansa Technik Philippines for a third overhaul line for the Airbus A380 to respond to a recent sharp increase in demand for MRO services for the aircraft type that many airlines have since reactivated.

*in million €

Even though Europe remains Lufthansa Technik's core market, the declared goal is to expand its presence in APAC and the Americas. "There is no reason why we should not be as present in the Americas and APAC as we are in EMEA," says Sören Stark. "Regardless of regions, I'm happy to say: We are well prepared for a market that is as attractive again now as it was before the crisis."

Over the next few years, Lufthansa Technik's "classic" MRO business areas will be subject to various industry-cyclical developments, with mainly positive effects. The Aircraft Component Services business is expected to continue its recovery. A positive trend in demand is also expected in the Aircraft Maintenance Services business, which will also be accompanied by rising prices due to the worldwide shortage of hangar capacities for larger checks. In the Engine Services business, Lufthansa Technik anticipates significant catch-up effects from the crisis period in 2023 and 2024. In addition, many new engines will then be due for their first check in the workshops.

Demand for cabin completions and maintenance services for VIP, government and special mission aircraft remains high. In the future, the company wants to further increase its share of the defense market in particular. After having successfully entered the military programs CH-47 Chinook (transport helicopter) and P-8A Poseidon (maritime patrol and reconnaissance aircraft) through letters of intent with strategic partners in the past fiscal year, Lufthansa Technik hopes for further positive developments in this area. Central to this remains the close cooperation with the Special Air Mission Wing of the German Federal Ministry of Defense (BMVg). Here, for example, the additional conversion of two Airbus A321LR troop transports handed over last year for medical evacuations (MedEvac) is scheduled for 2023.