Rising sales with a simultaneous decline in EBIT
Lufthansa Technik, a subsidiary of the Lufthansa Group, achieves a profit in the triple-digit million range in the first quarter of 2024. The company was already able to achieve such a figure in 2023, making it the global market leader in aircraft maintenance, repair and overhaul (MRO).
Dr. William Willms, CFO of Lufthansa Technik, emphasizes: "Of course, we are pleased to have earned more than EUR 100 million again in the first quarter of 2024. Ultimately, however, it should be noted that our adjusted EBIT fell by 14% compared to the same period last year, despite significant revenue growth."
The aim is to reach the previous year's level for the year as a whole.
Lower EBIT due to strikes in Germany
According to the information provided, the results are nevertheless slightly lower than forecast with EBIT of 116 million euros. Last year, EBIT amounted to 135 million euros. This is due in particular to the strikes in Germany in recent months, which have also affected air traffic. In addition, there were material bottlenecks and disproportionately high cost increases.
In the first quarter, turnover amounted to 1.8 billion euros, which is 15% higher than in the same period of the previous year.
The EBIT margin was 6.6%, compared to the target of 10%. In 2023, this was 8.8%.
2,000 new employees per year
Lufthansa Technik reports that it signed more than 1,000 new contracts last year and generated 8 billion euros in new business. According to the information, 174 contracts have already been signed in the first quarter of the current year.
The number of employees is also rising steadily. At the end of March 2024, Lufthansa Technik had 23,000 employees. Within one year, the company was able to hire 2,000 new employees. This is a sign of the company's attractiveness. The number of employees is also expected to grow by four digits in 2024. However, rising personnel costs are an important issue, particularly in Germany.
"The agreement with the trade union in the latest collective bargaining negotiations for our employees in Germany was good news," explains Willms. According to him, the long-term influence of salaries on the cost structure will also have a major impact. Lufthansa Technik must work efficiently to counteract this.