Lufthansa Group doubles net profit to $2.1bn

Lufthansa Group has doubled its net profit from €791 million ($862 million) to €1.67bn ($2.1bn) for the full year of 2023. Total revenue increased from €30.9bn ($33.7bn) to €35.4bn ($38.58bn). ""With their above-average commitment, they made 2023 one of the three best years in Lufthansa Group's history,"" said Deutsche Lufthansa CEO and chairman of the executive board Cartsen Spohr. For the full year, the company will pay a dividend of €0.30 per share. It marks the first dividend the company has paid to shareholders since 2019. It also noted that passenger numbers increased significantly by 20% to over 120 million passengers. Spohr added: ""We are investing the record amount of €4.5 billion [$4.9bn] in new aircraft, in our cabin interiors, lounges, ground processes and in personal and digital services. As part of the largest fleet modernisation in our history, we expect to take delivery of at least 30 new aircraft this year, including around 20 long-haul jets for Lufthansa."" The group's airlines all reported a strong increase in revenue. Lufthansa Airlines reported a 23% increase in revenue at €16.1bn ($17.5bn) for the year along with an operating income of €16.9bn ($18.4bn) and operating expenses of €16bn ($17.4bn). SWISS revenue also increased by 23% to €5.9bn ($6.4bn) YoY. Operating income for 2023 was €6.2bn ($6.8bn) and operating expenses was at €5.4bn ($5.9bn). Its adjusted earnings before interest and taxes (EBIT) was up from a loss of €466 million ($507.8 million) in 2022 to a positive €854 million ($930.5 million) in 2023. Austrian Airlines saw a 25% increase in revenue for 2023 at €2.3bn ($2.5bn). Operating income was at €2.4bn ($2.6bn) and operating expenses were €2.2bn ($2.4bn). Its adjusted EBIT was up from €3 million ($3.2 million) in 2022 to €127 million ($138.4 million) in 2023. Brussels Airlines revenue increased by 26% to €1.5bn ($1.6bn), with operating income at €1.6bn ($1.7bn) and operating expenses at €1.55bn ($1.7bn). Adjusted EBIT was up from a loss of €75 million ($81.7 million) in 2022 to a positive €53 million ($57.8 million) in 2023. Eurowings saw a significant increase in revenue at 40% to €2.59bn ($2.8bn). Operating income was at €2.7bn ($2.9bn) and operating expenses at €2.6bn ($2.8bn). Adjusted EBIT was up from a loss of €17 million ($18.5 million) to a positive €339 million ($369.45 million) in 2023. However, its cargo division Lufthansa Cargo saw revenue down 36% from €4.6bn ($5bn) in 2022 to €3.98bn ($4.3bn) in 2023. Operating income was at €3bn ($3.3bn) and operating expenses was at €2.9bn ($3.16bn). Notably, adjusted EBIT was down 86% from €1.6bn ($1.7bn) in 2022 to €219 million ($238.67 million) in 2023. ""Despite a volatile business environment, which was influenced by global tensions last year, Lufthansa Cargo was able to successfully maintain its position,"" said Lufthansa Cargo CEO Ashwin Bhat. He added: ""However, the development also shows that we must not slow down. We need to continuously work on improving our quality, our network and our service promise to remain attractive."" The Lufthansa Group said it expects revenue to ""increase significantly in the 2024 financial year."" It added that it is in ""intensive discussions, particularly with the European Commission"" to have the ITA Airways deal closed by sometime in the year. Following approval, Lufthansa will acquire a 41% stake in ITA for €325 million ($355.7 million).