Lufthansa Technik continues on its course of growth. The world market leader in aircraft maintenance, repair and overhaul (MRO) has decided to invest well over one billion euros in the coming years.
Investments will be made in all three world regions, i.e. the Americas, Asia-Pacific (APAC) and Europe, Middle East and Africa (EMEA). "Our plans substantiate our aim to expand our leading market position," says Chief Financial Officer Dr. William Willms. As part of its Ambition 2030 corporate strategy, Lufthansa Technik had announced its intention to increase its commitment not only in North America in particular, but also in Asia.
"To finance our growth and investments, we must, of course, also generate corresponding revenues," says William Willms. 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 euros), despite the significant challenges facing the aviation industry, such as ongoing difficulties in the supply of materials. After the third quarter, the figure is already valued at
486 million euros (+5.9 percent compared to the same period last year).
The company's revenue increased by as much as 13.9 percent to 5.5 billion euros in the first nine months of the year and is expected to exceed the seven billion euro mark for the first time at the end of the year. Lufthansa Technik continues to successfully secure its future business and has already signed 523 new contracts this year (previous year period: 587). In addition to reaching agreements in the company's traditional core segments of engine and component services, innovations in the areas of digitization and sustainability are also paying off.
With LATAM from South America, ANA as well as EVA Air (both from Asia), Lufthansa Technik has for the first time equipped airlines outside the Lufthansa Group with AeroSHARK in recent months. The functional surface film developed together with BASF successfully imitates the skin of sharks, reduces the aerodynamic drag, and enables significant fuel savings. With its unique Digital Tech Ops Ecosystem*, Lufthansa Technik continues to score highly with customers in the digital arena. Since its introduction in 2023, its modules have already added value in the servicing of thousands of aircraft. A special cabin modification agreement was also announced in the third quarter. As the first Boeing-licensed service center, Lufthansa Technik will modify the cabin interiors on 787 Dreamliner aircraft.
The ceremony to mark the topping out of a new hydraulics workshop at the Hamburg location was celebrated a few weeks ago. The construction of two more large workshop buildings at the company's headquarters has become definite. The investment by Lufthansa Technik in Hamburg alone is in the mid three-digit million euro range. However, money will not only be used to expand and modernize existing sites, but also for new ones. It will soon be known where Lufthansa Technik will build a new plant for the overhaul of engine parts and aircraft components in southwestern Europe. Plans for two other major investments outside Europe are also well advanced and will be announced shortly.
To achieve its ambitious corporate goals, Lufthansa Technik is also focusing on inorganic growth. The acquisition of an 80 percent stake in ETP Thermal Dynamics of Tulsa, Oklahoma, USA a few weeks ago, for example, represents a targeted portfolio expansion in the components business. The company is specialized in aircraft heat exchangers as well as oil and fuel coolers. The acquisition not only strengthens Lufthansa Technik's capacities in this area but also its supply chain. In addition, significant investments continue to be made in materials and personnel. At the end of September, 24,114 people were working for Lufthansa Technik worldwide, an increase of about 2,000 employees compared to the same time last year.
