Lufthansa Technik keeps growing, but external challenges are increasing

Lufthansa Technik continued its growth course in the first quarter of 2026, but had a somewhat more moderate than expected start of the fiscal year with regard to its earnings performance. Revenue rose to 2.3 billion euros in the first three months (+12 percent compared to the same period last year), underscoring the high global demand for technical aircraft services. The share of revenue from customers outside the Lufthansa Group grew from 73 to 78 percent. However, the global market leader in aircraft maintenance, repair, and overhaul continues to face challenges concerning its margin development.

Adjusted EBIT for the first quarter was 158 million euros (-2 percent), the margin declined accordingly from 8.0 to 7.0 percent. The main reasons for the ongoing challenges are the continuing material shortages, particularly for engine maintenance, increased material costs, and a U.S. dollar exchange rate that is less favorable for Lufthansa Technik than in the previous year. In addition, the company – like the entire aviation industry – is closely monitoring the crisis in the Middle East.

Dr. Christian Leifeld, Chief Financial Officer of Lufthansa Technik commented: “We are sticking to our long-term plan and are once again investing hundreds of million euros this year in our future. We therefore have corresponding high expectations for our earnings. However, industry-wide material shortages and price increases pose a daily challenge for us. The extent to which this will affect our MRO business obviously depends largely on how long the conflict lasts and how it impacts our customers. So far, the crisis has not had a significant impact on our results. However, we are seeing the first airlines reduce their flight capacity. This, in turn, could dampen our growth and profit momentum, at least temporarily,” says Christian Leifeld. “We are therefore considering various scenarios and taking precautions for the factors we can control. Internal cost discipline is at the top of our agenda, with our strong customer focus remaining unchanged.”

Meanwhile, Lufthansa Technik continues to drive forward the planned development and expansion of new and existing locations. The opening of a new state-of-the-art production facility for the repair and overhaul of aircraft components in Tulsa (Oklahoma, USA) was celebrated a few weeks ago. At the new location in Santa Maria da Feira, south of Porto (Portugal), groundbreaking for the 55,000-square-meter facility – which will service aircraft components and engine parts – is set to take place shortly. 700 jobs are expected to be created there.Preparations for the construction of a new facility are also underway in Calgary, Canada, where a new engine shop is being built for Mobile Engine Services. Initial work is already being performed at interim sites in both Portugal and Canada.

At the expanding European center of excellence for base maintenance services on wide-body aircraft in Malta, Lufthansa Technik recently completed the first cabin modification on a Boeing 787 Dreamliner. Meanwhile, the South American LATAM Airlines Group decided to equip even more of its aircraft with AeroSHARK, the nature-inspired solution for reducing drag, which was developed by Lufthansa Technik and BASF Coatings. There was also good news from Asia last quarter: With the Juneyao Group, Lufthansa Technik signed its largest-ever contract for engine services in China.

An important step for the German locations was the recent conclusion of a new collective bargaining agreement for Lufthansa Group ground staff. Moreover, the so-called “Zukunftstarif” (Future Agreement)  includes additional provisions that benefit production employees at Lufthansa Technik. These measures enhance the attractiveness of the jobs and strengthen the company’s competitiveness in the labor market.