The Lufthansa Group has reported that, due to the strong increase in demand for air travel, it nearly doubled its revenue to €32,8 billion (R637bn) in the 2022 financial year, compared with the previous year’s €16,8 billion (R326,2bn).
In 2022, the company generated an adjusted EBIT of €1,5 billion (R29,1bn) compared with the previous year’s €1,7 billion loss (R33,05bn), returning to a clearly positive result despite high inflation, especially regarding fuel costs. The adjusted EBIT margin improved to 4,6%, while the previous year it was -9.9%.
Nett income was €791 million (R15,3 billion), a significant improvement on the previous year’s €2,2 billion (R42,7bn).
In total, 102 million passengers were welcomed on board, more than twice as many as in 2021.
In 2022, the Passenger Airlines segment was divided into two parts. While earnings at the beginning of the year were still heavily impacted by the spread of the Omicron variant and travel restrictions, the segment benefited from a significant increase in demand for airline tickets over the course of the year.
Passenger airline revenues increased by 148% year-on-year to €22,8 billion (R443,2bn) in 2022 due to the significant increase in passenger traffic and higher yields.
Adjusted EBIT at Passenger Airlines improved significantly in the past fiscal year, at an operating loss of €300 million (R5,8bn) compared with the previous year’s €3,3 billion loss (R64,1bn).
Due to strong demand and continued limited capacity, average yields increased significantly, especially in the second half of the year. In 2022, yields were 16% higher than in 2019, with the increase in the fourth quarter amounting to 21%. Despite significant inflation costs, the passenger airlines achieved a clearly positive adjusted EBIT in the third and fourth quarters of the year.
SWISS and Austrian Airlines also generated an operating profit for the full year 2022. SWISS Adjusted EBIT: €476 million (R9,2bn) and Austrian Airlines: €3 million (R58m).
Adjusted free cash flow at record high
In 2022, due to the improvement in earnings, strong increase in bookings and rise in customer pre-payments, as well as consistent management of receivables and payables, operating cash flow improved significantly. Nett capital expenditures amounted to €2,3 billion (R44,7bn) in 2022 compared with the previous year’s €1,1 billion (R21,3bn), lower than expected due to the delay in planned aircraft deliveries. Overall, adjusted free cash flow reached an all-time high of €2,5 billion (R48,6bn) in 2022 and improved significantly compared with the previous year.
The group expects demand for air tickets to remain strong in 2023. It says demand for air travel during the Easter and summer vacation periods is particularly robust. The most popular destinations are once again Spain, Italy, Greece, and other Mediterranean countries. Its passenger airlines also continue to experience high demand for flights to and from North America.
Carsten Spohr, CEO of Deutsche Lufthansa AG, says: "Lufthansa is back. With innovative services, a new premium cabin on board, and new digital tools, we want to remain the quality and innovation leader in our industry.”
