Lufthansa reports 2025 operating profit beat, 2026 outlook murky over Middle East

By Joanna Plucinska

LONDON, March 6 (Reuters) – Lufthansa on Friday reported better-than-expected results for its 2025 financial year as stricter financial management and fleet turnover helped the airline manage costs and maximise profits.

European airlines, including Lufthansa, benefited from slightly lower fuel bills in 2025, bolstering earnings as passenger demand has remained strong.

“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,” Chief Executive Carsten Spohr said in a statement.

Lufthansa reported an adjusted operating profit of 2 billion euros ($2.32 billion), compared with 1.9 billion euros projected by a company-compiled analyst poll. That’s up from 1.6 billion euros in adjusted operating profit reported in 2024.

The German airline group also reported an operating profit margin of 4.9%, up from 4.4% in 2024. 

Lufthansa wants to grow operating margins back to 8%-10% between 2028 and 2030 from 4.4% in 2024, but strikes, like the most recent one on February 12, have made it challenging for the airline to mitigate lost earnings. 

The carrier said that the outlook for 2026 was unclear due to geopolitical uncertainty while projecting capacity growth of 4%, alongside growth in revenue and profit margin. 

“The war in the Middle East proves once again how exposed air traffic is and how vulnerable it remains,” Spohr said. 

($1 = 0.8610 euros)

(Reporting by Joanna Plucinska, editing by Miranda Murray and Mrigank Dhaniwala)