Lufthansa Technik reports strong financial results despite challenging environment
Lufthansa Technik (LHT) has reported strong financial results for fiscal 2022, with revenue of €5.6 billion and earnings of €511 million, setting a new record for the company. Despite challenges related to supply-chain bottlenecks and skilled labor shortages, LHT signed 706 new contracts worth €9.6 billion and ended the year with 4,242 aircraft operated by 800 customers under service contracts.
LHT's CEO Soeren Stark has stated that the company's VIP completions and refurbishment services have remained in high demand over the last three years. The VIP market is showing promising signs, and LHT is investing a "high double-digit million Euro" sum in a new interiors workshop and adjoining paint center at its Hamburg completion center. This investment is aimed at optimizing processes and creating more efficiencies.
After reducing its workforce by 20% following the pandemic, LHT hired more than 2,100 employees last year and plans to add an additional 4,000 employees this year. This growth reflects the company's optimistic outlook regarding the future of the aviation industry, with LHT expecting the upward trend in air travel to continue to drive demand for maintenance services.
Looking ahead, LHT predicts that the global MRO market could exceed pre-pandemic levels as early as this year, with a total volume of approximately €96 billion. This forecast is in line with the recovery of the aviation industry, as more people return to air travel and airlines increase their capacity.
Stark has acknowledged that LHT faces challenges related to supply-chain bottlenecks and skilled labor shortages, but the company has shown its resilience and adaptability in navigating these issues. With its strong financial performance in fiscal 2022 and strategic investments in its operations, LHT is well-positioned to take advantage of the opportunities presented by the recovery of the aviation industry.