Lufthansa Group announced its results for fiscal year 2022. The German company generated EBIT (Earnings before interest and taxes) of 1.5 billion euros. The net profit received by the company was 791 million euros.
«Lufthansa is back on track. In just one year, we have achieved an unprecedented financial turnaround. With an operating profit of €1.5 billion, the Lufthansa Group has achieved a much better result than expected. Demand for air travel remains high in 2023. We are investing billions in new state-of-the-art, fuel-efficient aircraft. With innovative services, a new premium cabin on board and new digital tools, we want to remain the leader in quality and innovation in our industry.» Said Carsten Spohr, CEO of Deutsche Lufthansa AG.
Passenger division
During 2022 Lufthansa Group moved a total of 102 million passengers, twice as many as in 2021. After emerging from the pandemic period, the first half of 2022 saw a gradual increase in passengers, with earnings at the beginning of the year affected by the new variant of the Omicron virus and the travel restrictions associated with it, but still recording an increase in ticket demand.
Over the course of the year, revenues in the passenger sector increased by 148% year-on-year. Earnings were 22.8 billion euros.
In 2022, yields were 16% above the pre-crisis level of 2019, and the increase in the fourth quarter amounted to 21%. Still the passenger airlines managed to achieve positive Adjusted EBIT in the third and fourth quarters, giving battle to the increase in operating costs.
SWISS and Austrian Airlines stood out for achieving operating profits for the full year 2022.
Cargo Division
Air logistics for the Lufthansa Group continued to show positive numbers. Although supply still does not exceed the levels of the periods prior to the COVID-19 pandemic. The sharp increase in air cargo overall contributed to these positive results.
On the other hand, the lack of capacity in cargo holds meant that supply within the segment could not be increased and thus exceed pre-pandemic values.
Yields reached a record level in the history of Lufthansa Cargo and were 136% above the pre-crisis level in 2019. Adjusted EBIT increased by 7 percent year-on-year to €1.6 billion (previous year: €1.5 billion), also an all-time record in the company’s history.
New aircraft and interior designs
The key to these gains is the addition of more modern and efficient fleets. This is why the Lufthansa Group placed an order for new, more efficient long-haul aircraft. The order includes seven Boeing 787-9s, 10 Airbus A350-1000s and five A350-900s.
The company expects to deliver 100 long-haul aircraft over the next few years, which will reduce costs by 30% compared to the current fleet.
Lufthansa Group is expanding its premium offering with the introduction of a new generation of in-flight cabin products. Allegris is Lufthansa’s new option to enhance the customer experience in all classes.
With an investment of EUR 2.5 billion, Allegris is Lufthansa’s biggest bet in its entire history.
