"Significantly Improved" Q1 2023 Results Boosts Lufthansa Group
The Lufthansa Group has released its financial results for Q1 2023 and has been buoyed by strong demand for the forthcoming holiday season.
The Lufthansa Group has released its financial results for Q1 2023 and has been buoyed by strong demand for the forthcoming holiday season.
DALLAS - Germany’s Lufthansa Group has said it has "significantly improved" its financial results for Q1 2023 compared to the same period in 2022. This was due to the demand surge for the forthcoming summer holiday season.
However, the group posted earnings before interest and tax (EBIT) loss for Q1 2023 of €273m (US$300.96m). This compared to a €577m loss last year. Group revenue stood at €7bn (US$7.7bn), up 40% year-on-year. Passenger numbers across the whole group also soared to 22 million, with capacity standing at 75% of the pre-covid 2019 level.
The airline said its numbers had been affected by increased costs of preparing for the forthcoming summer season and the effect of strikes at several of its hubs.
Across the passenger airlines of the group, only Swiss (LX) generated an EBIT profit of €77m (US$85m). Meanwhile, Austrian Airlines (OS) posted a €73m (US$80m) loss, Brussels Airlines (SN) a €44m (US$48m) loss, Eurowings (EW) a €104m (US$114m) loss and the largest member of the group, Lufthansa (LH) a €381m (US$420m) loss.
In the cargo sector, the group said that Lufthansa Cargo generated an EBIT profit of €151m (US$166m), but this was down on the record results for Q1 2022. It said this was ‘due to the market-wide normalization of air freight rates.’
Carsten Spohr, CEO of Deutsche Lufthansa AG, said, ”The Lufthansa Group is back on track. After a good first quarter in which we were able to significantly improve our result, we now expect a travel boom in the summer as well as a new record in our traffic revenue for the year as a whole.
“On short- and medium-haul leisure-oriented routes, demand is already exceeding 2019 levels. The focus now is on once again offering our guests a consistent premium product experience on all group airlines.
“Our guests are already benefiting from numerous product improvements, both on the ground and on board. The Lufthansa Group is well positioned to further strengthen its position among the top five airline groups in global competition.”
https://airwaysmag.com/lufthansa-orders-22-long-haul/
Featured Image: Lufthansa fleet at Frankfurt (FRA). Photo: Christian Winter/Airways.
.webp)
David H. Stringer, the History Editor for AIRWAYS Magazine, has chronicled the story of the commercial aviation industry with his airline history articles that have appeared in AIRWAYS over two decades. Here, for the first time, is a compilation of those articles.
Subjects A through C are presented in this first of three volumes. Covering topics such as the airlines of Alaska at the time of statehood and Canada's regional airlines of the 1960s, the individual histories of such carriers as Allegheny, American, Braniff, and Continental are also included in Volume One. Get your copy today!
