Annual Report 2016

Lufthansa Technik Group at a glance

Our industry is changing in a way it has not done for a long time. Whilst the boom in aviation is seeing the number of aircraft in operation continue to grow, new technologies and production methods are resulting in aircraft, components, and engines that are more reliable and require less maintenance. This is causing massive changes to the demands on MRO service providers.

The total global market is growing significantly, albeit very differently in specific regions, but increasing MRO capacity, the difficult financial situation of many airlines, and the increasing number of low-cost competitors are combining to produce sustained and intense price pressure in our field. At the same time, manufacturers themselves are entering the service business as competitors, particularly in the area of engines.

In this extremely demanding competitive environment, Lufthansa Technik developed very positively in 2016. With over 30 subsidiaries and holdings all around the world and significantly more than 20,000 dedicated employees, we have once again demonstrated our defining role within the industry. The number of aircraft being supported has seen double digit growth to more than 4,000, and turnover reached a new all-time high.

We used the year 2016 to adapt to many of the new challenges. As examples: we entered into partnerships for supporting new engine types with several major engine manufacturers; the maintenance hangar at London-Gatwick, commissioned jointly with easyJet, demonstrates significant progress in this price segment; and we have achieved "technical readiness" for important new aircraft models such as the Airbus A320neo and A350.

We were also successful in another field. Last year, we laid the foundation for a business division dedicated to digital solutions, which is to play an essential role in shaping the digitalization of our industry as of this year. With "Condition Analytics", we have presented our first digital product for predictive maintenance. These were important steps, but only initial steps, towards the digitalization of our business – and there will be many more steps to follow.

The company's success in 2016 is essentially the product of the know-how and the commitment of its employees. We thank them all for what they have achieved. We also thank our customers for the partnership in cooperation and their trust in us throughout the year.

 

    2016 2015
Revenue thousands of euros 5,143,607

5,099,145

Result from operating activities thousands of euros 382,824 445,234
Earnings before interest and taxes
(Adjusted EBIT)
thousands of euros 411,315 454,398
Earnings before tax (EBT) thousands of euros 320,807 318,580
Investments thousands of euros 216,443 148,421
Depreciation on assets thousands of euros 106,888 103,035
Balance sheet total thousands of euros 5,038,047 4,454,509
Employees (year average)   20,708 20,289
Personnel expenditure thousands of euros 1,272,271 1,317,095