Overview of business developments and comparison with original forecast

The course of business was shaped by strong demand for flights and robust growth in the MRO business segment

The Lufthansa Group performed well in financial year 2023. The recovery in demand for flights after the coronavirus pandemic continued. Demand for leisure travel increased, especially in the summer months. Capacity in the Passenger Airlines segment was therefore continuously expanded.

Available capacity at Passenger Airlines was 16% higher overall in the 2023 financial year than in the previous year and thus reached 84% of the pre-crisis level from 2019. In view of the positive trend in demand in the passenger business, Passenger Airlines were able to significantly increase their average yields.

The Lufthansa Group’s cargo business declined in financial year 2023 as the entire sector returned to normal. Average yields in the Logistics segment stabilised in the second half-year, however, at a level still significantly higher than before the crisis. The freight business also reported volumes trending upwards again towards year-end.

In the MRO segment the continued increase in the number of flights resulted in significantly higher demand for maintenance and repair services. Earnings improved again as a result, despite inflation-related cost increases.

Adjusted EBIT of EUR 2,682m

Revenue at the Lufthansa Group increased by 15% year-on-year to EUR 35,442m (previous year: EUR 30,895m), primarily due to the further expansion of the flight programme, increasing unit revenues and strong growth in the MRO business segment.

The Lufthansa Group’s earnings also improved significantly year-on-year over the course of the 2023 financial year.
Adjusted EBIT increased by 76% to EUR 2,682m (previous year: EUR 1,520m). This is the third-best result in the company's history. The Adjusted EBIT margin amounted to 7.6% (previous year: 4.9%). EBIT improved by 88% to EUR 2,669m (previous year: EUR 1,419m).

All Passenger Airlines and the MRO business segment achieved an increase in Adjusted EBIT in financial year 2023. SWISS, Austrian Airlines, Brussels Airlines, Eurowings and Lufthansa Technik reported record results in the reporting year. Only the Logistics business segment saw a decline in earnings due to normalisation across the industry. ↗ Business segments

The net result attributable to shareholders of Deutsche Lufthansa AG in the reporting year came to EUR 1,673m (previous year: EUR 791m).

Adjusted free cash flow remains high

Net capital expenditure increased by 23% to EUR 2,811m (previous year: EUR 2,286m) in the 2023 financial year. Cash flow from operating activities decreased year on year to EUR 4,945m (previous year: EUR 5,168m), primarily due to the lower cash inflow from changes in working capital, which more than offset the increase in EBITDA. A strong increase in advance bookings after the coronavirus pandemic had been overcome supported the change in working capital in the previous year.

Adjusted free cash flow, which includes cash outflows for leases in addition to the cash flow from investing activities, decreased by 27% to EUR 1,846m in financial year 2023 (previous year: EUR 2,526m) due to the decline in operating cash flow and increased net capital expenditure in particular in connection with the modernisation of the fleet.
This meant that the figure was still significantly higher than the average of the pre-crisis years, however.

Balance sheet even stronger in the reporting year

The balance sheet was made even stronger in financial year 2023.
Positive free cash flow brought net indebtedness down to EUR 5,682m, a reduction of 17% on year-end 2022 (31 December 2022: EUR 6,871m). Net pension obligations rose by EUR 683m to EUR 2,676m compared with the level at the end of 2022 (31 December 2022: EUR 1,993m).

The ratio between the total of net indebtedness plus net pension obligations and equity was 46:54 as of 31 December 2023 (31 December 2022: 51:49).

At the end of the 2023 financial year, the Group had available liquidity of EUR 10.4bn, unchanged to the previous year.
↗ Financial position

Key performance indicators improve significantly as forecast

The Lufthansa Group announced its outlook for the 2023 financial year with the publication of the Annual Report 2022 on 3 March 2023. Due to the positive business performance, the earnings forecast of a significant year-on-year increase in Adjusted EBIT was specified over the course of the year. The expectation of Adjusted EBIT of at least EUR 2.6bn announced in August 2023 was ultimately achieved.

2022 1)
2022 2)
Forecast for
Revenue €m 32,770 30,895 significant
Adjusted EBIT €m 1,509 1,520 significant
Net capital expenditure €m 2,286 2,286 above previous year 2,811
Adjusted free cash flow €m 2,526 2,526 significantly positive, but below previous year 1,846
€m 6,871 6,871 below previous year 5,682
Adjusted ROCE % 7.3 7.6 significant
CO₂ emissions
grammes 90.0 90.0 slight
1) As stated in the Annual Report 2022.
2) As stated in the Annual Report 2023, including adjustments to previous year’s figures.

Lufthansa Group Annual Report 2023