- Lufthansa Technik benefits from high demand
Lufthansa's Engineering Division Benefits from Sustained High Demand for Air Travel
Lufthansa Technik, headquartered in Hamburg, saw a year-over-year increase of approximately 13% in earnings before interest and taxes (EBIT) for the period from April to June, reaching €194 million. The company reported a continued rise in demand for maintenance and repair services. Lufthansa Technik, which claims to be the world leader in aircraft maintenance, repair, and overhaul, achieved a record result for the first half of the year, though this was partly due to one-off factors and special effects. For the full year, the company expects a positive result on par with last year.
In the first half of the year, the company signed around 320 new contracts. "We're on the right track to continue growing from a strong position," said the company's CFO, William Willms. "But it won't be a walk in the park," he added, citing disproportionate cost increases and ongoing material supply issues, including delivery delays from manufacturers and suppliers. Despite these challenges, Willms noted the advantage of high demand. The company's revenue increased by nearly 18% year-over-year in the second quarter, reaching over €1.8 billion.
Lufthansa Technik continues to expand its workforce. As of the end of June, the company employed around 23,400 people, compared to approximately 21,500 at the same time last year. Recruitment efforts have been successful, the company reported.
The high demand for air travel significantly contributes to Lufthansa Technik's sustained earnings increase in maintenance and repair services. Despite facing challenges like disproportionate cost increases and material supply issues, the company's air travel business allows for a revenue increase of nearly 18% year-over-year.
