Lufthansa, operating profit of 1.5 billion (net at 791 million).  L'ad Spohr: “We're back. Ita breakeven soon.”

Lufthansa, operating profit of 1.5 billion (net at 791 million). L'ad Spohr: “We're back. Ita breakeven soon.”

ROME – “Unprecedented”. Thus, in an official note, Lufhansa defines its economic result for 2022. Last year’s financial statements close with an operating profit of 1.5 billion (adjusted Ebit) and a net profit of 791 million We are facing revenues – says the managing director Carsten Spohr – “much higher than expected”. These results are achieved despite the galloping inflation that weighs on all management costs, starting with fuel. If yesterday the stock of the carrier had closed with a fractional and slight drop, today it opens on the rise on the Frankfurt Stock Exchange. The CEO continues: “We are the leading group in Europe and number four in the world. We want to further increase our market share” with three fundamental guidelines: the quality of services to the traveler (as demonstrated by the “Suite Plus” arriving in First and Business classes of the Airbus 350), the evolution towards digital and respect for the environment”. To improve the passenger experience both at airports and in the air, Lufthansa is hiring 4,500 more people: 3,000 to strengthen flight personnel and another 1,500 on the ground. In this way, the workforce of the German group will exceed 115,000 units in the year. If we also consider pilots and commanders, the hirings will reach up to 12,000 in the year, at the a thousand a month. The German giant of the skies also writes a check for 7.5 billion to purchase another 22 latest generation aircraft from the American Boeing and above all from the European Airbus. The “Suite Plus” arriving on Airbus from 2024 350 Revenues doubled Here are the figures from the financial statements, at a glance: – Lufthansa doubles its revenues to 32.8 billion (previous year: 16.8 billion), – Adjusted EBIT is 1.5 billion euros (previous year: – 1.7 billion euros), – net profit is 791 million euros year (2021: -2.2 billion euros). The Lufthansa Group welcomed 102 million passengers on board in the last year, more than double the figure in 2021 (previous year: 47 million). The note continues that – “as a result of the sharp increase in demand for air travel – the number of flights has been significantly expanded during the year”. The number of flights “Overall, the capacity offered by the passenger airlines of the Lufthansa Group was 72% compared to the pre-crisis year of 2019. In the first quarter of 2022, capacity was just 57% of pre-crisis levels “, to then grow in a convinced way. This data (72%) tells us that Lufthansa has merged its flights a lot, making many people travel with a still relatively limited number of take-offs. This has evidently made it possible to contain operating costs. At the end of the year, the group’s aircraft occupancy rate stood at 79.8%. We are therefore 18.2 percentage points higher than the previous year (61.6 per cent). Freight transport is also doing well, “with Lufthansa Cargo’s yields 136% higher than the pre-crisis level of 2019”. Overall, “Adjusted free cash flow reached an all-time high of €2.5 billion in FY2022 and improved significantly year-over-year (-€1 billion). The Italian campaign In its press release, Lufthansa also refers to the Italian campaign, which will lead it to conquer control of Ita Airways, albeit with a minority shareholding, initially firm at 40%.In this regard, the German giant is very cautious and – in his note – he simply speaks of a “potential investment”.During the press conference in Frankfurt, however, Lufthansa comes into the open.The CEO Spohr underlines the strong demand for flights that comes from Italy, even from managers who return to travel for business. In this “strategic market for us”, the German group is certain to bring Ita Airways back to profitability in the course of “a very few years”, if it buys it. The profit will be the effect of “important synergies” or never defined in a Strategic Plan for Ita. In 2022, on the other hand, Lufthansa managed to bring Brussels in Belgium, so far the most fragile among its European subsidiaries, into profit. Managers confirmed In this euphoric climate, the Lufthansa group confirms the managing director Spohr in the position. This, ahead of deadlines. The merit of the manager – according to the Germans – is having saved Lufthansa from bankruptcy on the occasion of the terrible Covid pandemic. Spohr is on course to become one of the longest-serving CEOs in civil aviation history, having taken command of Lufthansa in 2014. Chief Financial Officer Remco Steenbergen will also be extended in the position for another five years. LUFTHANSA NUMBERS IN 2022 LUFTHANSA PRESS CONFERENCE ON THE 2022 FINANCIAL STATEMENT



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