Lufthansa Group expects record result in 2023

Lufthansa Group is heading record result in 2023/Photo: Lufthansa Group

Lufthansa posted a record result in the second quarter of 2023. 2023 should be one of the most successful in the Group’s history, according to the German airline. It tripled its profits compared with the previous year. Increased demand and higher ticket prices were responsible for the significant rise.

Lufthansa is heading for one of the three most lucrative years in its history in the second quarter. Operating profit adjusted for special items (adjusted Ebit) is expected to be at least 2.6 billion euros in 2023, the company announced on Aug. 3.

Last year, Lufthansa had earned around 1.5 billion euros in day-to-day operations and had previously only forecast a significant increase for 2023. In its best year to date, 2017, the Group had achieved an adjusted operating profit of just under 3 billion euros.

However, due to bottlenecks in European air traffic, flight capacity this year is only expected to reach around 85 percent of the level seen in the pre-Corona year 2019. Previously, CEO Carsten Spohr had targeted 85 to 90 percent.

Adjusted operating profit higher than ever in a second quarter.

In the second quarter, the airline increased its revenue by 17 percent year-on-year to almost 9.4 billion euros thanks to more passengers and higher ticket prices.Adjusted operating profit almost tripled to almost 1.1 billion euros, the highest level ever in a second quarter.The bottom line was a profit of 881 million euros, three and a half times as much as a year earlier.The Airbus A380 makes a comeback and pilots get more pay.

Since the Corona crisis at the latest, many airlines have grounded the Airbus A380 because of too few bookings. Now, however, the jumbos are making a comeback, also at Lufthansa.

And: Lufthansa offers significantly higher salaries. Depending on the position, Lufthansa is offering its pilots 25, 33 or 50 percent more pay.This is to be part of a pay package negotiated with the Vereinigung Cockpit (VC) union.  Over the next three years, basic pay should rise by at least 18 percent if the deal is reached in three stages, according to a letter from the employer to employees obtained by Reuters. Including the lump sums already promised last year and the inflation compensation premium, this would result in an increase of at least 25 percent for captains and 33 to more than 50 percent for co-pilots.

Lufthansa wants to avert strike with offer

In the letter to pilots, Lufthansa is seeking the agreement of the approximately 5,200 cockpit employees at the main Lufthansa brand and the cargo subsidiary Lufthansa Cargo in order to avert a strike during the peak travel season. Employees can vote from now until Aug. 10. (jwm)

Sources: reuters, dpa, Lufthansa

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