Capacity limitations at Lufthansa Technik have had a knock-on effect on its parent, where external MRO expenses have increased by 21% to €1.94 billion ($2.1 billion) in the year to date due to Lufthansa Group airlines being forced to contract out more work.
At the same time, Lufthansa Technik has approved “well over” €1 billion ($1.08 billion) of global investments to sustain strong growth that has pushed it to outperform its parent airline in 2024.
The world’s largest MRO provider saw its external sales rise 14% in the first nine months--as compared with the prior-year period--reaching €3.7 billion.
Adjusted operating profit was €486 million, up 6%, which compared with negative €20 million at Lufthansa Airlines. The only Lufthansa group subsidiary to perform better than Lufthansa Technik was Swiss with an adjusted EBIT of €581 million, although this was decrease from the previous year.
“The continuing high level of demand for flights prompted a further rise in demand for maintenance and repair services, leading to Lufthansa Technik posting a record result in the reporting period,” stated Lufthansa.
Lufthansa Technik continues to target an adjusted EBIT for the 2024 financial year at a level comparable to the record result of the previous year (€628 million), despite the significant challenges facing the aviation industry, such as ongoing difficulties in the supply of materials, staff and skills shortages and the depreciation of the U.S. dollar.
As part of Lufthansa Technik’s growth plans, investments will be made in the Americas, Asia-Pacific (APAC) and Europe, Middle East and Africa (EMEA), with North America and Asia being two areas of focus.
“Our plans substantiate our aim to expand our leading market position,” said chief financial officer William Willms.
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