Deutsche Lufthansa AG concluded the 2025 financial year with the highest revenue in its 100-year history. As the group announced in its latest financial results, revenues rose by five percent to approximately €39,6 billion. Despite significant geopolitical tensions, particularly in the Middle East, the group succeeded in substantially increasing its adjusted EBIT to €2 billion.
The company thus looks back on a year of economic consolidation, in which the cargo division and technical services served as key pillars, while the core brand, Lufthansa Airlines, recorded initial successes of its comprehensive restructuring program. Given the positive cash flow development and a robust balance sheet, the Executive Board and Supervisory Board are proposing to the Annual General Meeting an increase in the dividend to €0,33 per share. For the current year, 2026, management forecasts further growth but points to the considerable uncertainties caused by the unstable situation in the Gulf region, which is affecting both fuel prices and global traffic flows.
Economic indicators and operational milestones
Reaching the two-billion-euro mark in operating profit represents a significant improvement for the Lufthansa Group compared to the previous year, when adjusted EBIT was 1,6 billion euros. The operating margin climbed accordingly from 4,4 to 4,9 percent. A key driver of this result was the continued strong demand in the passenger segment. In total, the Group's airlines – which, in addition to the core brand, include Swiss, Austrian Airlines, Brussels Airlines, Eurowings, and increasingly ITA Airways – welcomed 135 million passengers. The seat load factor reached a record high of 83,2 percent.
The business with ancillary services proved particularly profitable. Customers' willingness to invest in premium products such as the new Lufthansa Allegris cabin interior or personalized services led to a 15 percent increase in revenue in this area. The group also benefited from a noticeable stabilization of flight operations. Expenses for flight disruptions, such as compensation and rebookings, decreased by €362 million compared to the previous year. This positive financial performance was further supported by external factors such as lower kerosene prices and a favorable exchange rate for the US dollar, which reduced the cost base by approximately €500 million.
Progress in the turnaround of the core brand
A key focus for management last year was the restructuring program of its core brand, Lufthansa Airlines. This package, known as the turnaround, showed its first economic effects in 2025: the brand's annual result improved by €250 million, returning it to profitability with an adjusted EBIT margin of 0,9 percent. The goal is to sustainably increase profitability through approximately 700 individual measures. The Group expects this to have a gross profit effect of €1,5 billion in 2026.
The strategy aims to limit unit costs through more efficient hub management and increased use of subsidiaries such as Lufthansa City Airlines and Discover Airlines. Fleet modernization remains a key lever. The deployment of state-of-the-art long-haul aircraft like the Boeing 787 Dreamliner is intended not only to reduce operating costs but also to increase reliability. By the end of 2026, the proportion of aircraft of the latest technological generation is expected to reach approximately 30 percent of the total fleet.
Strong performance in the logistics and technology segments
Beyond passenger traffic, the cargo and technology divisions once again made above-average contributions to the Group's success. Lufthansa Cargo increased its operating profit by almost 30 percent to €324 million. This was achieved despite a volatile global economy, boosted by strong business on Asian routes and stable demand for air freight capacity.
Despite the challenges posed by international tariffs and currency effects, Lufthansa Technik achieved an operating profit of €603 million, nearly matching the record level of the previous year. The company benefited from the global recovery of the maintenance, repair, and overhaul (MRO) market. With newly concluded contracts totaling €8,8 billion, the Technik division enjoys a high degree of planning certainty for the coming fiscal years. To address trade policy challenges, the company strategically adjusted its logistics flows to minimize the impact of import restrictions and customs barriers.
Geopolitical risks and strategic realignment
Despite the positive results, CEO Carsten Spohr warned of the dangers posed by the current situation in the Middle East. The conflict in the region has once again highlighted the vulnerability of global air traffic. In this context, Spohr criticized the massive dependence on hubs in the Persian Gulf, which he described as a geopolitical Achilles' heel. He called for a strengthening of European sovereignty in air transport to secure the continent's connection to global markets, independent of crises in third-party countries.
Interestingly, the tense situation in the Gulf is currently leading to a shift in demand. As travelers increasingly seek routes that bypass crisis zones, Lufthansa is experiencing a sharp rise in demand for long-haul flights to Asia and Africa. The airline group is therefore considering short-term frequency increases to destinations such as Singapore, India, and China. This flexibility in network planning is seen as a crucial competitive advantage for mitigating the increased volatility in the energy markets and the uncertainties in supply chains.
Outlook for the 2026 financial year and shareholder participation
For the current year, 2026, the Management Board is optimistic but anticipates continued cost inflation, particularly in personnel and fees. Nevertheless, adjusted EBIT is expected to be significantly higher than the previous year. Shareholders are to directly benefit from this performance. The Management Board and Supervisory Board propose increasing the dividend by ten percent to €0,33. This would correspond to a payout ratio of 30 percent of the Group's net income, which is in line with the company's long-term dividend policy.
Chief Financial Officer Till Streichert emphasized that 2025 was a transitional year in which important strategic decisions were made. In the medium term, the group aims for an operating margin of eight to ten percent. To achieve this goal, fleet modernization will reach its preliminary peak in 2026: Statistically speaking, almost every week a new aircraft will join the fleet that year. This growth is intended to occur almost exclusively on long-haul routes, while the capacity on short- and medium-haul routes will be kept stable to further optimize the efficiency of the European hubs.