Additional Businesses and Group Functions

      2023 2022 Change in %
Operating income €m 3,245 2,768 17
Operating expenses €m 3,499 3,050 15
Adjusted EBITDA1) €m -93 -181 49
Adjusted EBIT1) €m -206 -298 31
EBIT1) €m -252 -344 27
Segment capital expenditure €m 30 45 -33
Employees as of 31 Dec Number 8,681 8,033 8
Average number of employees Number 8,411 7,922 6
1) Figures include the results of equity investments of the associated company “Ameco” which were previously reported in the MRO business segment; previous year's figures have been adjusted accordingly.

Additional Businesses and Group Functions include the Group’s service and financial companies, above all AirPlus, Lufthansa Aviation Training and Lufthansa Systems, as well as the Group Functions for the Lufthansa Group.

AirPlus offers corporate payment solutions

Lufthansa AirPlus Servicekarten GmbH (AirPlus) is a leading international provider in the global market for payment and billing services. Under the AirPlus International brand, it offers solutions in 57 countries worldwide. The company served more than 55,000 corporate customers in total in 2023.

The Lufthansa Group signed a contract with SEB Kort Bank AB of Stockholm (Sweden) for the sale of AirPlus in June 2023. The purchase price is approximately EUR 450m. The sale to SEB Kort opens up new opportunities for AirPlus by allowing the two companies to combine their strengths and know-how. AirPlus is currently in a carve-out process to unwind the contractual relations with its current parent before being transferred to its new owner. The transaction is expected to close in summer 2024 and is subject to various closing conditions, including the approval of the supervisory authorities.

AirPlus increased its billing volume by 31% year on year in the reporting year. Its volume of business approached that of the pre-crisis period again, supported by an increase in average prices, especially for flight tickets, and new customer acquisitions.

As of 2023, AirPlus offers Google Pay alongside Apple Pay as another mobile payment solution for the company credit card AirPlus Corporate Card. AirPlus also introduced a new platform for analysing expenses, known as AirPlus Intelligence. In the growth area of B2B payments, a significant increase in customers and transaction volumes was reported.

AirPlus intensified its corporate responsibility activities in the reporting year, obtaining certification for 2022 under the Impact label from myclimate, an international climate protection organisation. The label confirms that the unavoidable carbon emissions resulting from its commercial activities have been measured correctly and that a corresponding amount has been paid to a high-quality climate action project from myclimate.

Adjusted EBIT of AirPlus in the reporting year came to EUR -56m (previous year: EUR -74m).

Lufthansa Aviation Training profits from strong demand for air transport

Lufthansa Aviation Training GmbH (LAT) is one of the leading flight training companies, providing vocational and professional training for cockpit and cabin crew at twelve training centres. LAT’s customer portfolio includes the companies in the Lufthansa Group as well as more than 250 national and international airlines.

The need to train cockpit and cabin crews is even higher due to strong demand for flights. LAT was able to increase its training volume and the load factors for the simulators again year on year in the reporting year.

Further investments were made in new training equipment and infrastructure in financial year 2023. This particularly entailed the acquisition of more full-flight simulators for the aircraft types Boeing 777, Boeing 787 and Airbus A320. The maintenance work started in previous years at the training centre in Frankfurt continued according to plan.

LAT organised another Aviation Day at its training centre in Frankfurt in July 2023. This recruitment event held with other companies in the Lufthansa Group presented various occupations related to aviation. The LAT flight school and the European Flight Academy (EFA) used the Aviation Day and other information events to advertise for a career as a commercial pilot in the reporting year.

After training operations restarted the previous year, over 150 flight cadets began EFA training courses in Germany and Switzerland in the reporting year. This meant the new flight school concept could be continued successfully. The theoretical part of the training takes place in Bremen or Zurich and lasts for around two years, with practical training given at sites in Goodyear, USA, Grenchen, Switzerland, and Rostock-Laage in Germany.

LAT’s Adjusted EBIT amounted to EUR 16m in the 2023 financial year (previous year: EUR -1m).

Lufthansa Systems remains strong in airline IT market

Demand for flexible, versatile IT solutions remains strong, making Lufthansa Systems a key partner of the digital transformation for more than 350 airlines worldwide. This enabled it to win additional new customers and bring numerous projects to a successful close in the reporting year.

Lufthansa Systems has expanded its role as a vital strategic IT unit within the Lufthansa Group, and so helps to harmonise IT within the Lufthansa Group. Lufthansa Systems was changed from a GmbH & Co. KG to a GmbH in September 2023 to simplify its organisational structure and reduce administrative expenses.

Including all of its equity investments, the IT company generated Adjusted EBIT of EUR 4m in the reporting year (previous year: EUR 3m).

Group Functions results on level with the previous year

The earnings for the Additional Businesses and Group Functions business segment are largely determined by the Group Functions, whose earnings reflect the currency hedging and financing activities carried out by Deutsche Lufthansa AG on behalf of the companies in the Group. The result is therefore generally heavily exposed to exchange rate movements.

Total revenue for Group Functions rose in the reporting year due to higher income from internal service charges by 5% to EUR 1,745m (previous year: EUR 1,663m). Operating expenses of EUR 1,958m were 5% up on the previous year (previous year: EUR 1,870m), largely due to higher IT and staff costs. Adjusted EBIT of EUR -213m was 3% down on the previous year (previous year: EUR -207m).

Result for Additional Businesses and Group Functions up on previous year

Higher internal Group income from central services and higher revenue, especially at the AirPlus group, caused total operating income for Additional Businesses and Group Functions to increase by 17% year-on-year to EUR 3,245m (previous year: EUR 2,768m) in financial year 2023.

Operating expenses climbed by 15% to EUR 3,499m (previous year: EUR 3,050m), particularly due to the companies’ increased business activity.

Adjusted EBIT amounted to EUR -206m in the reporting year (previous year: EUR -298m), supported by an improvement in earnings at AirPlus, a positive result from equity investments and an improved exchange rate result. EBIT came to EUR -252m (previous year: EUR -344m). The difference to Adjusted EBIT in the reporting year mainly resulted from expenses for M&A activities.

Lufthansa Group Annual Report 2023