Lufthansa closes 2023 with net profits of 1.7 billion and returns to the dividend
The impact of strikes will weigh on Q1 results. On Ita 'progress but decision slower than expected' and interest in Tap remains
by Mara Monti
3' min read
3' min read
"We are making progress on the acquisition of Ita Airways although more slowly than expected. We continue in an intensive dialogue with the European Commission to get a green light as soon as possible." Lufthansa Group CEO Carsten Spohr, speaking to reporters at the presentation of the 2023 financial figures, said that getting the green light as soon as possible will allow Ita Airways not only to survive but to play a role in the airline industry in Europe. Lufthansa also remains interested in the pro-vivatisation of Portuguese Tap Airways. 'We are waiting to see what the government will do, but we cannot acquire two companies at the same time.
Lufthansa closes 2023 with turnover up to EUR 35.4 billion
Lufthansa closes 2023 with revenue up to €35.4 billion compared to €30.9 billion in 2022 and operating profit at €2.7 billion compared to €1.5 billion in the previous year. The German group more than doubled its net profit to EUR 1.7 billion against EUR 790 million. For the first time since the pandemic, the company decided to return to distributing a dividend to shareholders of 0.30 cents per share.
However, the impact of strikes and falling logistics profits will lead to an operating loss in the first quarter of 2024, the company said, offsetting strong demand for post-Covid travel. The fourth quarter had already shown signs of weakness with net profits settling at EUR 67 million compared to EUR 307 million in the same period of 2022. However, 'the group remains committed to its goal of generating an adjusted EBIT margin of at least 8 per cent,' the statement said. Net debt fell to EUR 5.7 billion from EUR 6.9 billion in 2022, standing at around EUR 1 billion below the pre-crisis level.
Lufthansa transported over 120 million passengers in 2023
.Last year, the carrier carried more than 120 million passengers, 20 per cent more than in 2022, and for the first time all of the group's airlines reported an operating profit. SWISS, Austrian Airlines, Brussels Airlines and Eurowings all achieved record results, a statement said: In 2023, the aviation division's turnover rose to EUR 28.3 billion compared to EUR 22.8 billion in the previous year.
Lufthansa expects average capacity of around 94% over 2019 for 2024
.Demand for travel continues to be strong in the current year, and the Lufthansa Group expects an average capacity of around 94 per cent compared to 2019, representing a growth of 12 per cent compared to 2023.
