- Adjusted EBIT for the first nine months up 300 million euros on the previous year
- Sustained improvement in cost control thanks to consistent implementation of the Lufthansa Airlines Turnaround Program
- Lufthansa Cargo continues positive trend
- Group-wide record levels of employee satisfaction
- Stable premium demand and high advance bookings for the fourth quarter
Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG:
"Our review of the third quarter is overall positive. We have had the best summer in terms of our flight operations in the last decade - with regularity of over 99 percent and a double-digit improvement in punctuality. At the same time, the long-awaited aircraft deliveries are finally picking up speed, as are the extensive product improvements on our long-haul fleets. In combination with numerous digital innovations, upgraded services, and newly designed lounges, passenger satisfaction rose significantly in the third quarter. With employee satisfaction also reaching new highs across the Group, 2025 marks a positive turning point. This also applies to our unit costs in the second half of the year, which are developing significantly better than in previous quarters thanks to strict cost management and numerous efficiency measures. In addition, demand remains stable, with the premium segment continuing to be particularly strong, and the booking outlook for the fourth quarter is positive. Even though we must continue to work intensively on the turnaround of our core business and the efficiency of our airlines, we can confirm our forecast of a significant improvement in earnings in 2025 today. However, we remain concerned that Germany as a location for business is benefiting less and less from our success, as shown by the fact that domestic flights within Germany have halved since 2019 due to regulatory cost developments.”
Results
In the third quarter, the Lufthansa Group increased its revenue by four percent year-on-year to 11.2 billion euros (previous year: 10.7 billion euros). This was the strongest quarter in terms of revenue in the history of the Lufthansa Group. The company generated an operating profit (Adjusted EBIT) of 1.3 billion euros, which is on level with the previous year. The operating margin for this period was 11.9 percent (previous year: 12.5 percent). Operating profit for the first nine months amounted to 1.5 billion euros, up 300 million euros on the previous year.
Consolidated net profit fell to 1.0 billion euros in the third quarter, 12 percent below the previous year's level. In the first nine months of the year, it improved to around 1.1 billion euros (previous year: 830 million euros).
Passenger airlines significantly improve results in the first nine months
In the third quarter, the Lufthansa Group's passenger airlines welcomed on board around 42 million passengers (previous year: 40 million). Despite a three percent increase in seat capacity, load factor in the third quarter rose slightly year-on-year to 87.5 percent.
Overall revenue for the passenger airlines rose to 8.9 billion euros in the third quarter (previous year: 8.8 billion euros). The airlines generated an operating profit of 1.2 billion euros, which is in line with the previous year's level.
For the first nine months of the year, passenger airline revenue totaled 23 billion euros, representing growth of around three percent compared with the previous year. Adjusted EBIT improved significantly to 914 million euros (previous year: 825 million euros). The positive development is mainly the result of lower fuel costs, increased result from equity investments, and the absence of the financial impact of strikes in the previous year.
The stabilization of flight operations in the first nine months also had a positive effect. Punctuality improved by 10 percentage points compared with the previous year. Flight schedule regularity was 99 percent. This reduced the financial burden resulting from flight irregularities by more than 200 million euros compared with the previous year.
Revenue per available seat kilometer (RASK) for passenger airlines fell by 2.2 percent in the third quarter due to the highly competitive environment in the continental European business and the expected temporary slowdown in demand on the North Atlantic.
In contrast, the increase in unit costs (CASK) excluding fuel and emission expenses was significantly mitigated. While industry-wide cost inflation, driven in particular by location and personnel costs, continues, the increase in unit costs was slowed to 0.5 percent compared with the previous year. The reason for this was general cost discipline and the initial positive effects of the consistent implementation of the Lufthansa Airlines Turnaround Program. The cost measures implemented this year contributed to a reduction of unit cost increase of 1.4 percentage points at Lufthansa Airlines.
In addition, the low oil price, supported by the weak development of the US dollar exchange rate, led to a reduction in fuel costs.
Lufthansa Cargo significantly increases earnings
Lufthansa Cargo continued the positive trend of the first half of the year in the third quarter and generated an operating profit of 49 million euros (previous year: 38 million euros). In addition to solid market demand and increased volumes, the result reflects the consistent focus on a competitive core and profitable, sustainable growth.
In contrast, Lufthansa Technik recorded a decline in operating profit to 130 million euros in the third quarter (previous year: 161 million euros) despite continued strong demand and growing revenues due to tariffs and negative exchange rate effects. The initiatives already launched to mitigate the negative effects of tariffs are being consistently pursued.
Adjusted free cash flow significantly increased, balance sheet strengthened
An improved operating result and tax refunds increased the company's operating cash flow. Together with a lower investment volume, particularly due to delayed aircraft deliveries, this benefited the development of Adjusted free cash flow.
At 1.8 billion euros, the Group generated almost twice as much Adjusted free cash flow in the first nine months as in the previous year (previous year: 1.0 billion euros). In the third quarter, it amounted to 818 million euros (previous year: 128 million euros).
Net debt continued to decline compared with the end of 2024, now standing at 5.1 billion euros (December 31, 2024: 5.7 billion euros). Net pension obligations fell by 440 million euros to 2.1 billion euros due to the higher discount rate. The Group's available liquidity increased by 900 million euros to 11.9 billion euros compared with the beginning of the year.
Till Streichert, Chief Financial Officer of Deutsche Lufthansa AG:
“Despite weak demand in the third quarter, we managed to stay on course, enabling us to reaffirm our full-year forecast today. The fourth quarter, which is particularly important for Lufthansa Cargo, is still ahead of us. However, we are confident that we will be able to achieve the significant earnings growth announced for 2025, primarily because the demand environment for our passenger airlines looks much more positive again in the fourth quarter. 2026 will be marked by disciplined capacity growth with a focus on our long-haul business. In addition, the consistent implementation of the Lufthansa Turnaround Program is at the top of our agenda."
Employee satisfaction clearly improved
The annual group-wide employee survey “involve me!” showed positive results. The engagement index, which reflects various factors such as motivation, satisfaction, and employer attractiveness, reached an average value of 3.9, the highest level since the measurement was introduced ten years ago, apart from the exceptional situation during the pandemic.
Outlook
Advance bookings for the fourth quarter indicate a more stable demand environment for all traffic regions. Based on the current booking status, both load factor and average yields are roughly on par with the previous year. Increasing stabilization can also be observed for the important North Atlantic and European traffic regions.
Despite ongoing global uncertainties, the Lufthansa Group confirms its forecast for the full year and, with capacity growth of around four percent, expects an operating result (Adjusted EBIT) significantly above the previous year (previous year: 1.6 billion euros).
The company continues to expect adjusted free cash flow to be at the previous year's level (previous year: 840 million euros). This includes net investments, primarily for the ongoing fleet renewal, of between 2.7 and 3.3 billion euros.
Further information
Further information on the results of individual business segments will be published in the report for the third quarter of 2025. This will be published simultaneously with this press release at 7:00 a.m. athttps://investor-relations.lufthansagroup.com/en/financial-reports-publications/financial-reports.html.
Traffic figures for the third quarter of 2025 will also be published at 7:00 a.m. at https://investor-relations.lufthansagroup.com/en/financial-reports-publications/traffic-figures.html
