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Lufthansa profit goes up, will employ 13,000, share profit, cabin crew call new strike

Christian Fernsby |
Lufthansa's cabin crew union has called a fresh two-day strike across two of Germany's busiest airports, Frankfurt and Munich.

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r> Taking place on Tuesday and Wednesday, it is the latest in a series of strikes to affect the German airline.

The union's announcement comes days after Lufthansa announced record profits for 2023.

Lufthansa said around 100,000 travellers are likely to be affected.

The strike will cover all departures out of Frankfurt airport on Tuesday and all flights out of Munich on Wednesday, from 04:00 (03:00 GMT) to 23:00 (22:00 GMT) local time, the union said.

It will affect both Lufthansa and its short-distance, low-cost subsidiary, Cityline. It is unclear whether Lufthansa's code share partners will also be affected.

The Independent Flight Attendants Organization (UFO) is calling for a 15% pay increase and a €3,000 ($3,280; £2,550) inflation compensation payment for its 18,000 members with Lufthansa and 1,000 members at Cityline.

It said that more than 96% of UFO's members voted in favour of the strike.

In the financial year 2023, the Lufthansa Group generated the third-best financial result in its history due to the continued high demand for air travel and another record result at Lufthansa Technik.

Revenue increased to 35.4 billion euros (previous year: 30.9 billion euros).

Operating profit, measured as Adjusted EBIT, rose to 2.7 billion euros (previous year: 1.5 billion euros).

The Adjusted EBIT margin improved accordingly to 7.6 percent (previous year: 4.9 percent).

The company more than doubled its net profit to 1.7 billion euros (previous year: 790 million euros).

The return on capital employed (Adjusted ROCE) rose by 5.5 percentage points to 13.1 percent (previous year: 7.6 percent).

Adjusted ROCE thereby exceeded the 2024 target value of ten percent already one year ahead of time.

The high demand and increased capacity led to significant revenue growth at the passenger airlines. Revenue rose to 28.3 billion euros in the 2023 financial year (previous year: 22.8 billion euros).

Lufthansa Technik once again generated a record result in 2023. The operating profit for the past financial year amounted to 628 million euros (previous year: 554 million euros).

For the first time since the coronavirus pandemic, shareholders are to participate directly in the company's strong earnings again.

The Executive Board and Supervisory Board will propose a dividend of 0.30 euros per share for the 2023 financial year at the Annual General Meeting on May 7, 2024. This corresponds to a dividend yield of around four percent on the year-end share price.

The proposed payout follows the Lufthansa Group's dividend policy of distributing between 20 and 40 percent of the Group’s profit to shareholders.

With above-average collective wage agreements and variable remuneration, the Lufthansa Group also allows its employees to participate in the positive development of the company's results.

Since mid-2022, the company has increased the remuneration of the professional groups at Deutsche Lufthansa by over 10 percent

For the past year, the company is paying Lufthansa Group employees profit-sharing payments agreed with the social partners amounting to over half a billion euros.

Over 13,000 employees were recruited last year and a further 13,000 recruitments are planned for the current year.


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