Brussels Airlines records record profit | Economy

In 2022, Brussels Airlines had suffered an operational loss of 75 million euros. But “19 percent more flights, an extensive network, high demand and higher margins” brought improvement in 2023. The company transported 8.3 million passengers throughout the year, 21 percent more than in 2022. “The Sub-Saharan destinations were once again a strong suit for the company,” it said. Turnover rose by a quarter to 1.54 billion euros and the operating profit margin was 3.4 percent. Brussels Airlines is aiming for a margin of 8 percent in the long term.

“We are proud that we can close 2023 with a nice profit, after an intense reorganization and several years at a loss,” financial director Nina Öwerdieck is quoted in a press release. “But we still have a way to go before we reach the target of an 8 percent profit margin, and before we can truly speak of a sustainably profitable company.”

Brussels Airlines has now added three of the five announced brand new A320neo aircraft, for short and medium distances, to its fleet. There will also be a tenth long-haul aircraft, which will allow the company to resume flights to Nairobi (Kenya) after nine years.

There has been social unrest at Brussels Airlines for some time now. The staff, who made concessions during the corona crisis, want a share of the pie now that the company is doing better financially. “A constructive dialogue with the social partners is an important element within the ambition to create a good working environment for all employees,” it says. “The airline remains committed to reaching agreements with representatives of the various departments to safeguard the future of the company.” At the end of 2023, 3,394 people were working at Brussels Airlines. About 250 will be added this year.

Brussels Airlines is part of the German aviation group Lufthansa. It also announced its annual results on Thursday. “For the first time, all passenger companies in the group reported an operating profit,” the group said. “Swiss, Austrian Airlines, Brussels Airlines and Eurowings all achieved record results.” The passenger companies, including the Lufthansa brand, transported a total of 123 million passengers, a fifth more than in 2022.

The entire Lufthansa group, including the Lufthansa Cargo freight division and Lufthansa Technik’s aircraft maintenance division, achieved a turnover of EUR 35.4 billion. It achieved an operating profit of 2.7 billion euros and saw its net profit more than double to 1.7 billion euros. For the first time since 2019, the group wants to pay out a dividend: 0.30 euros per share.

Lufthansa Group expects higher revenue and stable operating profit this year. She also hopes to get the green light from the European Commission for the planned entry into the Italian airline ITA Airways. Lufthansa would inject 325 million into ITA in exchange for a 41 percent stake. In the long term, the Germans could completely incorporate society. The European Commission has launched an in-depth investigation into the plans because it is “concerned that the transaction could restrict competition on several short- and long-haul routes to and from Italy.”