Lufthansa Group increases operating profit – strong demand and cost discipline more than offset higher fuel costs

Lufthansa Group increases operating profit – strong demand and cost discipline more than offset higher fuel costs

• With 12.2 billion euros the strongest-revenue quarter in the company’s history – an increase of nine percent

• More than half a billion euros in additional costs due to higher fuel prices

• Adjusted EBIT nevertheless rises six percent to 1.4 billion euros

• Unit cost increase at network airlines limited to half a percent thanks to moderate growth and strict cost management

• Lufthansa Cargo triples operating profit to 162 million euros

• Lufthansa Technik increases its prior-year result by more than 50 percent with an Adjusted EBIT of 200 million euros

Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG, says:

“The past quarter was the strongest in terms of revenue in the history of the Lufthansa Group. We succeeded in increasing operating profit by six percent compared to the previous year. With rising revenues amid consistently high demand and strict cost discipline, we were able to more than offset the increase in fuel costs of approximately half a billion euros. Our investments in modernizing our fleet and in-flight products are increasingly paying off. The focus remains on Lufthansa Airlines. Following the successful turnaround in reliability and customer satisfaction, we must now accelerate the financial turnaround of our core brand through both previously planned and additional measures, in order to restore it to its position as the flagship and benchmark of the Lufthansa Group in terms of value creation as well.”

Third-quarter result improved despite higher fuel costs

Lufthansa Group revenue increased nine percent year‑on‑year to 12.2 billion euros (previous year: 11.2 billion euros). The company recorded an operating profit (Adjusted EBIT) of 1.4 billion euros, an increase of six percent compared with the prior year (previous year: 1.3 billion euros) – despite a significant increase in fuel costs of 543 million euros compared with the prior year. The company succeeded in more than compensating for the cost increase through strong operating revenues and cost discipline.

Demand developed robustly across all segments in the third quarter. At the network airlines, average yields rose seven percent versus the prior year, driven by strong demand for premium tickets and on the routes to Asia and North America.

Eurowings also benefited from strong demand in European point‑to‑point traffic and achieved yields eight percent higher than in the previous year. At the same time, Lufthansa Cargo and Lufthansa Technik delivered results significantly above the prior year and thus made a strong contribution to the quarterly result.

The Adjusted EBIT margin fell slightly to 11.5 percent (previous year: 11.9 percent). Net income rose by around 300 million euros due to the improved operating result, positive valuation effects and a negative tax effect in the prior‑year period, to 1.3 billion euros (previous year: 966 million euros). Adjusted free cashflow reached roughly the prior‑year level at 793 million euros (previous year: 818 million euros).

Network airlines report strong demand and pursue cost discipline

The Group’s network airlines expanded their capacity for the first time this year in the third quarter compared with the prior year. Available seat capacity increased by 1.6 percent, primarily on long-haul routes. Growth was concentrated mainly in South America and Africa as well as selected routes to Asia. Yields rose 6.8 percent while load factor declined by 1.3 percentage points versus the prior year. Combined, these two metrics resulted in unit revenue growth of 5.2 percent versus the prior year, reflecting robust demand. This demand strength was driven notably by the premium segment as well as by traffic to Asia and North America.

Due to the sharply increased jet fuel prices caused by the conflict in the Middle East, fuel costs at the network airlines rose by more than 400 million euros compared with the previous year. Unit costs excluding fuel and emissions expenses increased by 0.5 percent compared with the previous year and were therefore well below the current inflation rate. Key factors for successful cost management were lower expenditure for fees and charges as well as reduced project costs. As part of the Lufthansa Airlines Turnaround Program, automation and digitalization were consistently advanced, which also had a favorable effect on the development of unit costs. In addition, capacity growth led to a fix cost degression.

Overall, the network airlines generated an Adjusted EBIT of 853 million euros, 108 million euros less than in the previous year. SWISS, Austrian Airlines and Brussels Airlines outperformed their prior-year results in the third quarter. Lufthansa Airlines, however, was burdened not only by rising fuel prices but also by costs of approximately 65 million euros resulting from the strikes in the first half of the year.

Point-to-point airlines continue to see strong intra-European demand

Eurowings reduced its capacity in the third quarter by 3.5 percent compared with the previous year, as flights to the Gulf region were initially suspended against the backdrop of the crisis in the Middle East and then replaced primarily by shorter routes to Southern Europe. Unit revenues rose by 10.0 percent, also driven by strong demand for premium offerings on European routes and additional revenues from the sale of ancillary services.

Unit costs excluding fuel and emissions expenses rose by 4.8 percent compared with the previous year, particularly because of reduced capacity and due to higher personnel costs and increased charges and fees, especially in Mallorca (Spain).

The equity result from the SunExpress joint venture amounted to 103 million euros in the third quarter, 20 million euros above the previous year.

Overall, Adjusted EBIT in the point-to-point airlines segment increased by 16 million euros to 214 million euros in the third quarter of 2026.

Lufthansa Technik and Lufthansa Cargo with significant profit increases

Demand for Lufthansa Technik’s maintenance, overhaul and repair services remains consistently high. Revenue rose by 20 percent year-on-year to 2.3 billion euros (previous year: 1.9 billion euros), with the increase mainly resulting from business with external customers. Adjusted EBIT of 200 million euros exceeded the prior-year level with an increase of 54 percent (previous year: 130 million euros). The Adjusted EBIT margin in the third quarter also rose by 1.9 percentage points to 8.6 percent.

Lufthansa Cargo was able to expand its capacity in the third quarter by five percent compared with the previous year, driven by ITA Airways belly capacity. At the same time, Lufthansa Cargo succeeded in increasing the volume of cargo shipped by seven percent and thus raising load factors by three percentage points compared with the previous year.

Against the backdrop of the crisis in the Middle East, demand in the air freight business remained high. Lufthansa Cargo once again achieved strong yields, which were 22 percent above the previous year. Lufthansa Cargo tripled its operating profit to 162 million euros (previous year: 49 million euros) and achieved an Adjusted EBIT margin of 15.6 percent (previous year: 6.0 percent).

The Lufthansa Group’s balance sheet continues to ensure financial stability and flexibility

Operating cashflow fell by approximately 500 million euros in the first nine months of the year compared with the previous year to around 3.4 billion euros. The decline is primarily due to lower operating profit and reduced ticket prepayments at the reporting date at the end of September because of shorter booking cycles compared with the previous year. Net investments amounted to 1.2 billion euros (previous year: 1.8 billion euros), significantly below the prior-year level, mainly due to higher cash inflows from sale-and-lease-back transactions of aircraft. At 1.8 billion euros, adjusted free cashflow after the first nine months of the year nearly reached the prior-year level.

The Group also reported a strong balance sheet in the third quarter of 2026. As of 30 September 2026, net debt including net pension liabilities stood at 7.3 billion euros, well below the level at the end of 2025 (8.3 billion euros). In addition, the total liquidity available to the company amounted to 11.8 billion euros at the end of September, which was above the level at year-end 2025. High liquidity strengthens the Lufthansa Group’s resilience to market volatility while at the same time providing the necessary financial flexibility.

Till Streichert, Chief Financial Officer of Deutsche Lufthansa AG:

“We improved our result compared with the previous year, despite higher fuel costs weighing on the quarterly result by more than half a billion euros – we are satisfied with that. This was supported by robust demand in passenger traffic, our discipline on unit costs and the strong earnings contributions from Lufthansa Cargo and Lufthansa Technik. We also expect a healthy demand environment for the fourth quarter. Due to the unchanged geopolitical situation, our expected fuel bill for the full year is rising to 9.3 billion euros. However, with a hedging ratio for our passenger airlines of around 86 percent for 2026 and already more than 60 percent for 2027, we are well positioned relative to the market. Given how far into the year we are and the higher fuel costs, we are refining our earnings forecast to between 1.7 and 2.0 billion euros. We are confident that we will achieve this range, in line with capital market expectations. Where we end up within this range will depend not only on fuel costs and demand but, in particular, on Lufthansa Cargo’s earnings performance in the fourth quarter.”