Mtu Aero Engines Hldgs Ag (MTUAF) Q3 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, ladies and gentlemen. Welcome to our conference call for MTU's Q3 2023 results. As usual, we start with a review and some key messages presented by Lars. Peter will start with a look on overall financials and more details on our OEM and MRO segment. Lars will continue with some thoughts on the 2023 guidance and a more general outlook. This will end the presentation part and we will open the call for questions. Let me now hand over to Lars for the review. Okay, thank you, Thomas, and also welcome from my side. Good to have you with us. As usual, let me start with the market environment. Passenger traffic improved to 96% of 2019 levels. Within that, domestic traffic exceeded pre-COVID levels already by 9%, whereas international traffic recovered to roughly 88%. Cargo flights remained robust with, as it is currently, 27% above 2019 level. This is despite a moderate gradual downward trend as cargo airlines slowly reduced capacity to take weaker demands into account. I would like to also give you a brief update about the GTF inspection program. As you heard and as discussed in early September, RTX has announced an enhanced GTF inspection program On this Tuesday, RTX provided further updates at their Q3 results release and confirmed the expectations of the impact operationally as well as financially. Further information has also been provided on the impact on other fleets, such as the smaller GTF variant as well as the V25. While these fleets might also be challenged with life limits to be applied on certain components, there will be only minor effects. on the operational and financial side from these programs. Key focus, and that's clear of all GTF partners, remains on limiting the impact on our airline customers. We are working very closely together with Pr...