High ticket prices and full aircraft have given Lufthansa good summer business. But the company is struggling with numerous operational problems.
The Lufthansa Group is reporting today on the record-breaking summer quarter. The company itself announced in August that it was expected to generate an operating profit (adjusted EBIT) of at least 1.3 billion euros in the third quarter of this year. This would mean that the result from the pre-Corona summer of 2019 would be exceeded for the first time, although around 15 percent fewer flights were completed than back then. A key reason for the high returns is significantly higher ticket prices.
During the pandemic, international flight operations almost collapsed and the Lufthansa Group had to be rescued with billions in aid from its home countries Germany, Austria, Switzerland and Belgium. The MDax group had repaid the aid in full by the end of 2022.
For the full year 2023, CEO Carsten Spohr has announced an operating profit of at least 2.6 billion euros, which would be the third-best result in the company’s history after 2017 and 2018. At that time, Lufthansa also benefited from the bankruptcy of its competitor Air Berlin.
Lufthansa is working on transforming itself into a focused airline group
After six months and the best second quarter in its history, the group has already accumulated an operating profit of 812 million euros on sales of 16.4 billion euros. The bottom line was a profit of 414 million euros. The company continues to struggle with the slow delivery of new long-haul aircraft as well as weak handling capacities at the Frankfurt and Munich hubs.
Strategically, the Kranich Group is working on transforming itself into a focused airline group. The agreed takeover of a 41 percent minority in the Italian state-owned company Ita is expected to be completed this year.
On Wednesday, Lufthansa announced the completion of the sale of the catering subsidiary LSG, with its around 20,000 employees, to the financial investor Aurelius. The sale of the service provider AirPlus to the Swedish bank SEB should also be finalized next year. The group is looking for a minority shareholder for Lufthansa Technik.