Lufthansa Technik has decided to invest well over €1bn in the coming years. Investments will be made in three regions – the Americas; Asia-Pacific (APAC); and Europe, Middle East and Africa (EMEA). “Our plans substantiate our aim to expand our leading market position,” said Dr William Willms, chief financial officer.
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,” said 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 (€628m), despite challenges facing the aviation industry, such as “ongoing difficulties in the supply of materials”, the company said. After the third quarter, the figure is valued at €486m, a 5.9% increase compared with the same period last year. The company’s revenue increased by as much as 13.9% to €5.5bn in the first nine months of the year and is expected to exceed €7bn for the first time at the end of the year.
Lufthansa Technik has already signed 523 new contracts this year (previous year period: 587). The company said that in addition to reaching agreements in its traditional core segments of engine and component services, developments in the areas of digitisation and sustainability are also paying off.
With LATAM from South America, and ANA and EVA Air from Asia, Lufthansa Technik has for the first time equipped airlines outside the Lufthansa Group with AeroShark in recent months. The functional surface film was developed with BASF to reduce aerodynamic drag, for fuel savings. Meanwhile the company said its Digital Tech Ops Ecosystem continues to score highly with customers. A special cabin modification agreement was also announced in the third quarter. As the first Boeing-licensed service centre, Lufthansa Technik will modify cabin interiors on 787 Dreamliner aircraft.
The ceremony to mark the topping out of a new hydraulics workshop in Hamburg was celebrated recently. 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 modernise 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.
Lufthansa Technik is also focusing on inorganic growth. The recent acquisition of an 80% stake in ETP Thermal Dynamics of Tulsa, Oklahoma, for example, represents a targeted portfolio expansion in the components business. 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 with the same time last year.
