Lufthansa Group reported EBIT of €1.5bn in the third quarter on the back of a strong summer season. Total Group revenues increased 8% from their prior-year level to €10.3bn, making the third quarter the Lufthansa Group’s strongest quarter in its history in revenue terms. Net income for the period increased substantially to €1.2bn compared to €809 million in the previous year.
Lufthansa passenger airlines carried 38 million travellers between July and September, with all group airlines reporting double-digit third-quarter adjusted EBIT margins. The increase is primarily attributable to a combination of strong demand, higher capacity offered and ongoing high yields.
The airline group further confirmed that fourth-quarter booking volumes show double-digit percentage growth.
"With the highest revenue and profit ever achieved in one summer - including an operating profit of 1.5 billion euros in the third quarter alone,” said Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa. “All airlines in our Group and Lufthansa Technik contributed to this with double-digit profit margins. At the same time, employee satisfaction in our company has improved significantly to the pre-crisis record level. It is paying off for all of us that we have combined our successful multi-airline and multi-hub strategy with strengthening the private travel segment, setting the right strategic course. We have also made significant improvements in operational stability and regularity despite continued challenging conditions. This trend is the basis for meeting our premium and quality standards and those of our customers even more effectively in the future again. Even though the geopolitical situation remains challenging, our booking outlook gives us reason to be positive - not only for a very good Group result this year, but also beyond."
Lufthansa Technik also reported record earnings thanks to strong demand for MRO services. Lufthansa Technik achieved an Adjusted EBIT of €168 million for the third-quarter period (previous year: €188 million).
Lufthansa Cargo achieved an Adjusted EBIT of €1 million compared to the previous year of €331 million in a seasonally weak third-quarter period. Cargo rates remained well above their pre-crisis levels, on a similar level compared to the second-quarter period. For the fourth quarter, a slight year-on-year increase in transported volumes is expected, said the airline.
Lufthansa Group has received an investment grade rating by Fitch, recognising the efforts to reduce debt. Net debt was significantly lower than at year-end 2022 at €5.4bn from €6.9bn at the end of 2022. Lufthansa’s available liquidity at the end of the quarter amounted to €11.1bn.
In the third quarter, the Lufthansa Group completed the sale of the LSG Group to the private equity company Aurelius. The review of the sale of a minority stake in Lufthansa Technik “is expected to be completed by the end of the year”. Lufthansa also confirmed that it was seeking approval from the European Commission for the agreed acquisition of a 41 percent stake in ITA Airways by early 2024.
The Lufthansa Group expects the demand for air travel to remain strong in the coming months. It expects to increase its capacity in the fourth quarter to around 91% of its 2019 level. Bookings for the fourth quarter are reported to be up by double digits in percentage terms compared to the previous year.
The Lufthansa Group expects to achieve a positive operating result also in the fourth quarter of 2023. Lufthansa Cargo and Lufthansa Technik are both expected to contribute to this. Despite the increase in fuel costs in recent weeks, the Group is confirming its previous expectation of generating an Adjusted EBIT for 2023 of more than €2.6bn.