Lufthansa Group reported its most profitable year ever in 2017, setting new financial benchmarks for the German aviation giant. The company’s robust performance was driven in part by strategic moves following the exit of major competitor Air Berlin, resulting in an impressive 70 percent surge in earnings before interest and taxes.
Demonstrating consistent momentum, Lufthansa Group achieved record results for the third consecutive year. However, the leadership anticipated increased competitive pressures in the German market for the following year, as international carriers intensified their focus on this lucrative region.
With the departure of Air Berlin from the market, low-cost operators such as EasyJet and Ryanair rapidly expanded their operations within Germany, stepping in to claim valuable market share once held by the nation’s number-two airline following its insolvency in October 2017.
In 2017, Lufthansa Group’s total revenue soared to EUR 35.6 billion. The company strategically invested approximately EUR 3 billion—a notable increase of one-third compared to the previous year. A significant portion, around EUR 900 million, was dedicated to acquiring aircraft from Air Berlin’s fleet, as outlined in the annual report.
The Group, which encompasses Lufthansa, Eurowings, Swiss, Brussels Airlines, and Austrian Airlines, posted net profits of €2.36 billion—a 33.1 percent rise—exceeding analyst forecasts of €2.28 billion.
Chief Executive Carsten Spohr stated, “Our strategic initiatives over recent years are delivering tangible results. We are optimizing operating costs without compromising the customer experience, while continually enhancing our product and service quality.”
The annual report also highlighted future challenges: “Competitive dynamics are intensifying.” Despite several market exits, even more new entrants emerged. As a result, the Group anticipated “significant volatility” in 2018.