Aviation’s supply chain and labor squeeze continue to worry Lufthansa Technik, despite the MRO giant powering through a strong second quarter to post a record pre-tax profit for the first half of the year.
Adjusted earnings before interest and taxes (EBIT) for the six months to June 30 were up 10% year on year to €319 million ($344.5 million) and the company is targeting a similar annual profit to last year.
Pre-tax profit for Lufthansa Technik (LHT) in 2023 was a record €628 million, up 26% year on year, as it reaped the benefit of its RISE reorganization program.
“The shortage of materials on the global market continues to constitute a growing burden, triggered by delays in deliveries by the manufacturers and suppliers of aircraft, engines and aircraft components; in addition, staff shortages in production areas and related extensive skill-building measures are having a negative impact,” Lufthansa stated.
The company’s core engine and aircraft component services have been affected by these trends, with LHT noting in a recent interview with Inside MRO that “the continuous ramp up and higher manhour volume per shop visits compared to legacy engines increases the pressure for skilled personnel”.
In response, LHT has added almost 2,000 staff in the past 12 months, taking its headcount to 23,401 by the end of June 2024.
“Measures to boost skilled labor comprise retention programs for senior experts, investments into dedicated training centers at our main facilities and an internationalization of our business, including access to new labor markets,” notes Martin Muller, head of business development engine services at Lufthansa Technik, in a recent interview.
