Despite an eight percent increase in revenue to €11,1 billion, the Lufthansa Group experienced a significant decline in operating profit in the second quarter of 2026. Adjusted EBIT fell from €870 million to €383 million compared to the same period last year.
The company cites increased fuel costs of around €750 million as the primary reason for the decline, resulting mainly from price fluctuations in the kerosene market due to the Middle East conflict. Additional costs of at least €150 million were incurred due to strikes in the spring. Despite continued strong passenger demand – particularly in premium booking classes and on routes to Asia – the increase in average revenues could not fully offset the cost increases in the core business. Against the backdrop of ongoing market volatility and shortened booking periods, the Management Board has adjusted its forecast for the full year 2026 and now expects adjusted EBIT in the range of €1,7 billion to €2,2 billion.
Development of passenger airlines and network adjustments
In the network airline segment, which includes the core brand Lufthansa as well as Swiss, Austrian Airlines and Brussels Airlines, capacity in the second quarter of 2026 was three percent lower than in the same period of the previous year. This decline resulted primarily from six strike days in April 2026 and from operational route optimizations on short-haul networks, including adjustments to the flight schedule of Lufthansa CityLine.
Despite the reduced flight schedule, the average aircraft load factor rose slightly to 81,6 percent. Unit revenues climbed by 6,4 percent compared to the previous year, with revenues on Asian routes increasing by more than 13 percent. However, high kerosene prices burdened the division with additional costs of over €600 million. Unit costs, excluding fuel and emissions expenses, rose by 3,1 percent due to capacity constraints, which the Group attributes primarily to increased personnel expenses and depreciation. Adjusting for the previous year's capacity, this resulted in a unit cost increase of approximately one percent. Consequently, the adjusted EBIT of the network airlines fell from €627 million in the previous year to €137 million. This result also includes a €108 million decline in the result from investments, mainly due to currency-related revaluations of lease liabilities at the subsidiary ITA Airways.
At its subsidiary Eurowings, the conflict in the Middle East led to adjustments in the flight schedule. The airline temporarily removed destinations in the Gulf region from its program and shifted capacity to routes in the Mediterranean. With a total capacity reduction of six percent, unit revenues rose by 9,4 percent thanks to strong demand in intra-European traffic. However, unit costs excluding fuel increased by 10,9 percent, due to the reduced capacity as well as expenses for maintenance, fees, catering, and preparations for the introduction of the Boeing 737-8 Max. Together with a €29 million lower result from the joint venture SunExpress, the point-to-point airlines segment posted an adjusted EBIT of minus €37 million, compared to €64 million in the same quarter of the previous year.
Development in the business areas of logistics and technology
Contrary to the trend in passenger traffic, Lufthansa Cargo's freight division recorded positive development. Cargo capacity increased by two percent in the second quarter of 2026, partly due to the marketing of cargo space from ITA Airways. Driven by continued high demand in air freight, average revenues rose by 27 percent compared to the previous year. Despite higher fuel costs, which were passed on to customers, Lufthansa Cargo improved its adjusted EBIT to €116 million, compared to €73 million in the second quarter of 2025. The freight division's operating margin was thus over 11 percent.
Lufthansa Technik continued the growth of the previous period. Revenue increased by 11 percent to €2,2 billion in the second quarter of 2026, with revenue from business with external customers rising by 23 percent. Operating profit, at €157 million, was slightly above the previous year's figure of €149 million. The continued high capacity utilization in the maintenance and repair of commercial aircraft supported the Group's overall result.
Financial position and key performance indicators
Lufthansa Group's net income decreased to €123 million in the second quarter of 2026, compared to €1,0 billion in the same period of the previous year. In addition to the decline in operating profit, valuation effects and a one-off tax effect from the previous year impacted the net income. The adjusted EBIT margin fell to 3,4 percent, compared to 8,4 percent in the previous year. Adjusted free cash flow was negative €365 million in the first half of 2026.
The Group's balance sheet structure remained stable during the reporting period. Net debt, including pension obligations, remained at €8,3 billion as of June 30, 2026, the same level as at the end of 2025. Cash and cash equivalents and loan commitments remained unchanged at €10,7 billion. Net investments in the first half of the year amounted to €1,0 billion and were primarily comprised of advance payments for future fleet renewals and final payments for eight newly delivered aircraft.
Board assessment and outlook for the full year 2026
Carsten Spohr, CEO of Deutsche Lufthansa AG, cited the impact of global crises and rising commodity prices when presenting the figures. At the same time, he emphasized the effectiveness of the restructuring measures initiated at the core Lufthansa brand. The turnaround program is based on fleet renewal, the transfer of capacity to more cost-effective airlines such as Discover Airlines and Lufthansa City Airlines, and general efficiency improvements.
Chief Financial Officer Till Streichert pointed to the reduced forecast certainty resulting from volatility in kerosene prices and shorter passenger booking deadlines. The group now expects adjusted EBIT for the full year 2026 to be between €1,7 billion and €2,2 billion. At the upper end of this range, the total result would exceed the previous year's figure. Capacity for the full year is expected to remain at the previous year's level, while the forecast for adjusted free cash flow of approximately €0,9 billion remains unchanged.