Pretax profits at the Lufthansa Technik group of Irish companies last year increased by 42 per cent to $81.36 million (€74.28 million).
Consolidated accounts lodged by Lufthansa Technik Airmotive Ireland Holdings show the group’s profits increased despite revenues decreasing by 7 per cent from $167.7 million to $155.58 million last year.
The directors state that the drop in revenues was driven by the sale to the Atlantic Aviation Group of aircraft maintenance firm, Lufthansa Technik Shannon Limited (LTSL), which generated turnoverin only the first three months of the prior year, until its disposal on March 31st, 2022.
On a like-for-like basis, revenues increased by 1.3 per cent. The Lufthansa business consists of subsidiaries engaged in leasing of aircraft engines; aircraft engine component repair and providing support to the Technical Services Provision and Mobile Engine Services operations in Ireland.
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A note attached to the accounts states that 2023 was one of the best years for the Lufthansa Group in economic terms, with the recovery in demand for flights after the Covid-19 pandemic continuing in 2023, resulting also in significantly higher demand for Maintenance Repair and Overhaul (MRO) services.
The directors state that 2023 revenues at the engine component repair segment increased by 41 per cent on the previous year “as operations continued to recover and ultimately surpass pre-pandemic levels” while revenues from pure engine component repairs increased by 42 per cent.
The increase in revenues in the engine subsidiaries offset a 13.5 per cent drop in revenues at the group’s leasing firm, this was largely driven by a reduction in receipts from redelivery of lease engines and the current year’s impact of a lower volume of leases.
The group last year recorded operating profits of $66.42 million, interest payments of $13.8 million and a $1 million profit on the sale of fixed assets, resulting in the pretax profit of $81.36 million.
The group recorded a post-tax profit of $69.64 million after incurring a corporation tax charge of $11.7 million.
Numbers employed by the group dropped from 412 to 348 with staff costs of $25.55 million. Last year’s profits take account of non-cash depreciation costs of $23 million and a non-cash write down in aircraft related components of $12.5 million.
The post-tax profits for 2023 further strengthened the group’s balance sheet with shareholder funds increasing to $768.38 million last year. Accumulated profits totalled $596.33 million.
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