Lufthansa Technik Expects Return To Pre-Crisis Levels By 2023
Lufthansa Technik returned to profitability last year as earnings before interest and taxes (EBIT) increased and the MRO provider foresees a return to pre-COVID-19 levels in 2023.
The Hamburg-headquartered company saw EBIT rise to €210 million ($232 million) against an uptick in revenues by 7% to more than €4 billion last year compared to 2020 when it posted a €383 million loss. However, it estimates revenues still amount to around 40% below pre-crisis levels.
Speaking at the company's annual press event on Wednesday (Mar. 9), Lufthansa Technik chief executive Johannes Bussmann predicted the global MRO industry will return to pre-COVID-19 levels by next year.
Bussmann, who is stepping down later this year, says the MRO giant is gradually overcoming a difficult two year-period and developing in the right direction with new customers numbering 42 last year and 621 new maintenance agreements with a volume of €4.7 billion.
Owing to the impact of the COVID-19 pandemic, Lufthansa Technik underwent an organizational restructuring last year. In summer 2021, it divided its setup into three MRO areas comprised of Engine Services, Aircraft Component Services and Aircraft Maintenance Services along with Digital Fleet Services and Original Equipment and Special Aircraft Services divisions.
It also closed six line stations in Germany, resulting in the loss of around 700 jobs. Its Ireland-based Lufthansa Technik Shannon business was divested last year along with the sale of two line maintenance businesses comprised of Frankfurt-based Lufthansa Technik Maintenance International and Lufthansa Technik Brussels in Belgium. The transfer of these units is expected to be completed by the end of this month.
Overall, employee numbers at the end of 2021 compared with the previous year by 10% to 20,569 people, but the company plans to return to pre-crisis staff levels this year after outlining plans to recruit up to 1,500 new staff in Germany and across its overseas businesses.