Lufthansa has decided not to sell part of its MRO business unit Lufthansa Technik to a third party. After considering all options, the airline group wants to retain a 100 percent share of LHT, for which it has set out a new growth strategy.
Over the past two years, Lufthansa has explored options to sell off a part of Lufthansa Technik. The German airline group said earlier this year that it was in discussions with potential buyers, but changed its view over the past months. CEO Carsten Spohr
said during the Q3 earnings call in November that a decision would be taken before the end of the year.
That decision is not to pursue the partial sale, but instead invest extra in LHT and benefit from the strong demand for maintenance, repair, and overhaul (MRO) capacity in the market. This has been evident this year in the financial results: Lufthansa Technik generated €4.814 billion in total revenues between January and September, up 20 percent year on year. Of this, €1.565 billion came from airlines within Lufthansa Group, the rest from third-party maintenance. Adjusted EBIT was €459 million, up 7 percent, with an EBIT margin of 9.5 percent.
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