Lufthansa Group increases operating profit by 20 percent and achieves historically highest turnover | News
Carsten Spohr, Chairman of the Board of Directors and CEO of Deutsche Lufthansa AG, says:
“Exactly 100 years ago, the first Lufthansa was founded. The values of that time – quality, reliability and connectivity – still make us successful today. Last year we were able to significantly increase the Group’s operating profit and achieve the highest turnover in our history. Our results demonstrate the resilience and stability of the Group. I would like to express my sincere thanks to our guests for their loyalty and to all our employees for their great commitment.
Lufthansa Airlines’ turnaround program remains a top priority, ensuring operational improvements across our core brand will be followed by economic progress this year.
The war in the Middle East proves once again how vulnerable air traffic is and how vulnerable it still is, even though the industry is now more resilient to crises than before. The enormous concentration of global traffic flows through the Gulf hubs is increasingly proving to be a geopolitical Achilles heel. This makes it all the more important not to further disadvantage European airlines and hubs. Europe’s sovereignty requires the ability to maintain its own connections to global markets.
In 2026, we will continue to consistently implement our strategy through internationalization, fleet renewal and efficiency improvements. Our anniversary year makes us proud of our past – and at the same time connects us to the future. We will continue to consistently expand our position as the leading aviation group outside the US.”
p>Results
In 2025, the Lufthansa Group generated the highest revenue in its history. Turnover increased by five percent compared to the previous year to 39.6 billion euros (previous year: 37.6 billion euros).
The Group significantly increased its operating result (Adjusted EBIT) to 2 billion euros (previous year: 1.6 billion euros). As a result, the operating margin improved to 4.9 percent (previous year: 4.4 percent). At EUR 1.3 billion, the consolidated net result remained at last year’s level (previous year: EUR 1.4 billion), as it was influenced by valuation effects on losses carried forward. Excluding this effect, net profit would have increased in line with operating profit.
The capacity offered in the passenger aviation sector increased by four percent last year, while the seat occupancy rate remained constant. Furthermore, the continued stabilization of flight operations resulted in substantially lower costs for flight irregularities (362 million euros less compared to 2024), which had a positive effect on both operating results and customer satisfaction. The increase in Adjusted EBIT was also supported by guests’ continued willingness to pay for support services. This generated additional revenue, especially through the premium product Lufthansa Allegris. In addition, lower kerosene prices and a weak US dollar resulted in cost savings of 500 million euros compared to the previous year.
Passenger airlines increase revenues
Lufthansa Group airlines welcomed 135 million guests on board their aircraft last year, an increase of three percent compared to the previous year.
The seat occupancy rate again reached a record level of 83.2 percent (previous year: 83.1 percent). The turnover of passenger airlines increased by three percent year on year to 30.1 billion euros. Combined, they generated an operating result (Adjusted EBIT) of 1.1 billion euros – four percent more than the previous year. ITA Airways made a positive contribution to the profit of 90 million euros.
This profit increase was achieved in an extremely challenging environment. The situation in the Middle East and other geopolitical tensions, the temporary weakness of demand in the third quarter, especially in the North Atlantic and in Europe, and persistent delays in the delivery of new aircraft required a high degree of flexibility from all airlines. As a result, yields came under pressure and fell 1.3 percent in 2025 from the previous year on a currency-adjusted basis.
The decline in average returns was offset by higher income from support services, which rose by 15 percent. In short, currency-adjusted revenue per unit (RASK) remained stable at last year’s levels.
Unit costs (CASK) increased by 1.9 percent compared to the previous year due to continued cost inflation, especially in the areas of fees, materials and personnel costs. However, cost development improved over the course of the year. In the fourth quarter of 2025, unit costs remained stable compared to the same period of the previous year, while they increased by 3.6 percent in the first half of the year.
In particular, the core brand Lufthansa Airlines increased its annual result by approximately 250 million euros compared to the previous year, returning to a positive Adjusted EBIT margin of 0.9 percent. The improvement reflects progress in the implementation of the Turnaround transformation program.
The Lufthansa Airlines Turnaround program will also contribute to a sustainable profit increase in 2026. For the current year, a cumulative gross profit impact of approximately EUR 1.5 billion is expected, rising to approximately EUR 2.5 billion in 2028.
The main drivers for the increased profitability at Lufthansa Airlines are the modernization of the fleet with modern, fuel-efficient aircraft such as the Boeing 787, the continued growth of Lufthansa City Airlines and Discover Airlines, as well as approximately 700 other individual measures, more than half of which are expected to be implemented by the end of 2026.
Till Streichert, Chief Financial Officer of Deutsche Lufthansa AG, says:
“Last year was a transition year marked by important turning points: the Turnaround program at Lufthansa Airlines gained momentum, as did the modernization of our fleet. Both will continue into 2026 and will noticeably benefit our profitability. In the medium term, we want to achieve an Adjusted EBIT margin of eight to ten percent and have taken important steps towards this goal.
Nevertheless, challenges and uncertainties remain for our business and the entire industry, today mainly driven by the situation in the Middle East. The crisis there currently makes it more difficult to make a profit forecast. Nevertheless, we remain optimistic about the future: we are faced with the challenges and expect Adjusted EBIT to increase significantly again in 2026 compared to last year.”
Lufthansa Cargo improves profits, Lufthansa Technik defies tariffs
Lufthansa Cargo continued its positive operational and financial development from 2024 over the past year, partly due to stable market demand and strong activities in Asia. For the full year 2025, the company generated an operating result of EUR 324 million (2024: EUR 251 million). This represents a strong increase of almost 30 percent compared to the previous year.
The global demand for maintenance and repair services (MRO) also continues to rise. Lufthansa Technik was able to conclude new contracts with a total volume of EUR 8.8 billion, which guarantees planning security and revenue growth for the coming years. The operating result was influenced by the development of the US dollar and tariffs. Nevertheless, Lufthansa Technik generated an operating profit of 603 million euros (previous year: 607 million euros). Lufthansa Technik has successfully implemented measures to counter the effects of the exchange rate and US tariffs. For example, logistics flows were specifically adapted.
Adjusted free cash flow is significantly higher than expected and the balance sheet remains strong
In 2025, the Lufthansa Group generated an operating cash flow of EUR 4 billion (previous year: EUR 3.9 billion). The increase is attributable to the increase in operating profit and tax refunds. Due to lower net investments than originally planned, mainly due to delays in aircraft deliveries, the Adjusted Free Cashflow for the full year amounted to EUR 1.2 billion (previous year: EUR 840 million).
Greater profit sharing for shareholders
The Lufthansa Group plans to share in the company’s success with its shareholders through a dividend, in line with its policy of paying out between 20 and 40 percent of consolidated net profit. For the 2025 financial year, the Board of Directors and the Supervisory Board will therefore propose a dividend of 0.33 euros per share to the General Meeting of Shareholders on May 12, 2026. This corresponds to a dividend increase of ten percent compared to the previous year and a dividend yield of four percent on the stock price at the end of the year. The payout ratio therefore increases to 30 percent (previous year: 26 percent).
Outlook
After a transition year in 2025 for the Lufthansa Group and Lufthansa Airlines in particular, the company’s transformation will continue to gain momentum.
For the full year, the Group aims for a further increase in turnover and a significant improvement in profits, as well as a further improvement in the operating margin. A further capacity expansion of approximately four percent for passenger airlines and continued fleet renewal with the expansion of the premium offering will contribute to achieving this target.
However, developments in the Middle East and the related geopolitical consequences for the global economy increase forecast uncertainty in the medium and long term. Disruptions to supply chains in the Strait of Hormuz are leading to increased volatility in oil markets. At the same time, however, the Lufthansa Group has recorded a strong increase in demand for long-haul flights since the weekend, especially on routes to and from Asia and Africa. The Group is therefore considering additional frequencies, for example to Singapore, India, China and South Africa.
The Lufthansa Group’s fleet modernization will reach its peak this year and next. By 2026, a new aircraft will be delivered on average almost every week and by the end of the year the new generation of aircraft will make up about 30 percent of the fleet. Passenger airline capacity growth will focus almost exclusively on long-haul routes, while capacity on short-haul routes is expected to remain stable, driven in part by more efficient coordination of hubs in Frankfurt, Munich, Zurich, Vienna, Brussels and Rome.
Further progress in the Turnaround program and the consistent modernization of the fleet will have a positive impact on Lufthansa Airlines’ results. Furthermore, Lufthansa Airlines expects to limit unit cost increases to half of inflation.
Due to continued strong demand in their markets, Lufthansa Cargo and Lufthansa Technik are also expected to see a clear increase in sales compared to the previous year.
