Lufthansa Group increases operating profit by 20 percent and achieves highest revenue in company history

• 2025: Nearly 40 billion euros in revenue and 2 billion euros in operating profit
• Passenger numbers grow to 135 million
• Lufthansa Airlines makes first progress with turnaround program
• Lufthansa Cargo increases operating profit by 30 percent
• Proposal to the Annual General Meeting: dividend increase to 0.33 euro per share
• Outlook for 2026: Earnings once again expected to be significantly above the previous year’s level, increased forecast uncertainty due to the situation in the Middle East

Carsten Spohr, Chairman of the Executive Board 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 – continue to make us successful today. Last year we were able to significantly increase the Group’s operating profit and achieved the highest revenue 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 continues to be a top priority, so that the operational improvements at our core brand will be followed by economic progress this year.

The war in the Middle East proves once again how exposed air traffic is and how vulnerable it remains, even though the industry is now more resilient to crises than it used to be. The massive concentration of global traffic flows via the Gulf hubs is increasingly proving to be a geopolitical Achilles’ heel. This makes it even 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 commits us to the future. We will continue to consistently expand our position as the leading airline group outside the US.”

Results

In 2025, the Lufthansa Group generated the highest revenue in its history. Revenue rose by five percent compared with the previous year to 39.6 billion euros (previous year: 37.6 billion euros).

The Group significantly increased its operating profit (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 1.3 billion euros, consolidated net income remained at the previous year’s level (previous year: 1.4 billion euros) as it was affected by valuation effects on loss carry forwards. Excluding this effect, Net Income would have increased in line with the operating result.

The capacity offered in the passenger airline business increased by four percent last year, while the seat load factor remained constant. In addition, the continuous stabilization of flight operations resulted in substantially lower expenses for flight irregularities (362 million euros less compared to 2024), which had a positive effect on both operating profit and customer satisfaction. The increase in Adjusted EBIT was also supported by the guests’ continued high willingness to pay for ancillary services. This generated additional revenue, particularly through the premium product Lufthansa Allegris. In addition, lower kerosene prices and a weak US dollar led to cost savings of 500 million euros compared with the previous year.

Passenger airlines increase earnings

The airlines of the Lufthansa Group welcomed 135 million guests on board their aircraft last year, an increase of three percent compared with the previous year.

The seat load factor once again reached a record level of 83.2 percent (previous year: 83.1 percent). Revenue of the passenger airlines increased by three percent year-on-year to 30.1 billion euros. Combined, they generated an operating profit (Adjusted EBIT) of 1.1 billion euros – four percent above the previous year. ITA Airways made a positive contribution to earnings of 90 million euros.

This increase in earnings was achieved in an extremely challenging environment. The situation in the Middle East and other geopolitical tensions, temporary demand weakness in the third quarter, particularly on the North Atlantic and in Europe, and ongoing 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 by 1.3 percent in 2025 compared to the previous year on a currency-adjusted basis.

The decline in average yields was offset by higher revenues from ancillary services, which rose by 15 percent. In sum, the currency-adjusted unit revenues (RASK) remained stable at the previous year’s level.

Unit costs (CASK) rose by 1.9 percent compared with the previous year due to ongoing cost inflation, particularly in fees, materials, and personnel costs. However, the cost development improved over the course of the year. In the fourth quarter of 2025, unit costs remained stable compared with the same period of the previous year, whereas in the first half of the year they increased by 3.6 percent.

Notably, the core brand Lufthansa Airlines increased its annual result by around 250 million euros compared with the previous year and thereby returned to a positive Adjusted EBIT margin of 0.9 percent. The improvement reflects the progress in the implementation of the transformation program Turnaround.

The Lufthansa Airlines Turnaround-program will also contribute to a sustainable increase in earnings in 2026. A cumulative gross earnings effect of around 1.5 billion euros is expected for the current year, rising to around 2.5 billion euros by 2028.

The main drivers for increased profitability at Lufthansa Airlines are the modernization of the fleet with modern, fuel-efficient aircraft such as the Boeing 787, the continuing growth of Lufthansa City Airlines and Discover Airlines, as well as around 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 well as our fleet modernization. Both will continue in 2026 and 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 toward this goal.

Nevertheless, challenges and uncertainties remain for our company and the entire industry, these days primarily driven by the situation in the Middle East. The crisis there makes it more difficult to provide an earnings forecast at present. Nevertheless, we remain optimistic about the future: we are facing the challenges and for 2026 again expect Adjusted EBIT to significantly increase to prior year.”

Lufthansa Cargo improves earnings, Lufthansa Technik defies tariffs

Lufthansa Cargo continued the positive operational and financial development of 2024 over the last year amongst other reasons due to stable market demand and strong business in Asia. For the full year 2025, the company generated an operating profit of 324 million euros (2024: 251 million euros). This represents a strong increase of almost 30 percent compared to the previous year.

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 8.8 billion euros, which ensures planning security and revenue growth for the coming years. The operating result was impacted 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 counteract the effects of the exchange rate and the US tariffs. For example, logistics flows were specifically adjusted.

Adjusted free cash flow significantly higher than expected, balance sheet remains strong

In 2025, the Lufthansa Group generated an operating cash flow of 4 billion euros (previous year: 3.9 billion euros). The increase is attributable to the rise in operating profit and tax refunds. Due to lower net investments than originally planned, primarily because of delays in aircraft deliveries, the Adjusted Free Cashflow amounted to 1.2 billion euros in the full year (previous year: 840 million euros).

Increased profit sharing for shareholders

The Lufthansa Group intends for its shareholders to participate in the success of the company through a dividend in line with its policy of distributing between 20 and 40 percent of consolidated net income. For the financial year 2025, the Executive Board and Supervisory Board will therefore propose a dividend of 0.33 euro per share to the Annual General Meeting on May 12, 2026. This corresponds to dividend increase of ten percent compared to the previous year and a dividend yield of four percent on the year-end share price. The payout ratio will thereby rise to 30 percent (previous year: 26 percent).

Outlook

Following a transitional year in 2025 for the Lufthansa Group and Lufthansa Airlines in particular, the transformation of the company will continue to gain momentum.

For the full year, the Group targets a further increase in revenue and a significant improvement in earnings, as well as a further improvement in its operating margin. A further capacity expansion of around four percent for the passenger airlines and the ongoing fleet renewal with the expansion of premium offerings will contribute to achieving this target.

However, developments in the Middle East and the associated geopolitical consequences for the global economy increase the medium- and long-term forecast uncertainty. Disruptions to supply chains in the Strait of Hormuz are leading to increased volatility in the oil markets. At the same time, however, the Lufthansa Group has recorded a sharp rise in demand for long-haul flights since the weekend, particularly on routes to and from Asia and Africa. The Group is therefore considering extra frequencies, for example to Singapore, India, China, and South Africa.

The Lufthansa Group’s fleet modernization will reach its peak this year and next. In 2026, a new aircraft will be delivered on average nearly every week, and by the end of the year, new generation aircraft will amount to around 30 percent of the fleet. The capacity growth of the passenger airlines will focus almost exclusively on long-haul routes, while the capacity on short-haul routes is expected to remain stable, partly driven by a more efficient alignment of the 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. In addition, Lufthansa Airlines expects to limit the increase in unit costs to half the inflation rate.

Due to continued strong demand in their markets, Lufthansa Cargo and Lufthansa Technik are also expected to see a clear increase in revenue compared with the previous year.

Further information

Further information on the results of individual business segments will be published in the annual report. This will be published at the same time as this press release on March 6, 2026, at 7:00 a.m. CET at https://investor-relations.lufthansagroup.com/en/investor-relations.html

The annual press conference will be streamed live from 10:00 a.m. CET at http://www.lufthansagroup.com.

The traffic figures for 2025 will also be published at 7:00 a.m. at Traffic figures - Lufthansa Group Investor Relations