Lufthansa reports record results in the third quarter

Deutsche Lufthansa AG reports a strong third quarter with record revenue, despite challenges from delayed aircraft deliveries and rising costs. While demand remains strong, the company is planning strategic investments to consolidate its position as a leading European airline group.

Increase in sales despite cost pressure

According to Deutsche Lufthansa AG, the group’s sales rose by five percent to 10.7 billion euros in the third quarter. This is the strongest quarter in the history of the Lufthansa Group. The increase is mainly due to the higher flight offerings and sales growth at Lufthansa Technik. Nevertheless, increased fees and technology expenses reduced the operating margin to 12.5 percent, compared to 14.3 percent in the previous year.

Record capacity utilization for passenger airlines

The Lufthansa Group’s passenger airlines transported over 40 million guests in the third quarter, which corresponds to growth of six percent compared to the previous year. The seat load factor rose to 87 percent, with August being the strongest month in the company’s history with a load factor of 88 percent. Despite industry-wide capacity growth and falling average revenues, the group points to stable demand, particularly in the premium classes.

Challenges in the market

Although sales increased, there was a decline in operating profit, particularly due to cost increases and delayed aircraft deliveries, according to the Lufthansa Group. These delays would have caused the need to continue operating older aircraft, which resulted in higher operating costs. In addition, the situation at German hubs would have caused challenges in terms of punctuality.

Future program and investments

In order to meet current and future structural challenges, Lufthansa has launched the ‘Turnaround’ program. At the same time, the group is making strategic investments in modernizing its fleet and strengthening international offerings. These measures are intended to increase the group’s competitiveness and secure its market position as the leading airline group in Europe.

Deutsche Lufthansa AG is a leading global airline committed to innovation and quality in the field of passenger transport. With its diverse offering and strategic investments, Lufthansa strives to set the highest standards in aviation and offer its customers exceptional experiences.

Progress in the Lufthansa turnaround program

Lufthansa Airlines is successfully implementing its comprehensive turnaround program. The aim of the program is to optimize efficiency and increase product quality while improving the airline’s sustainability. These measures are expected to achieve significant financial effects by 2026.

Strategic measures to increase efficiency

Lufthansa Airlines has announced that its turnaround plan aims to make the airline’s operations more efficient. This includes integrating short-haul flights into more cost-efficient flight operations. The company focuses on reducing complexity within the operational structure to achieve sustainable efficiency.

Financial forecasts until 2026

Lufthansa assumes that the measures as part of the turnaround program will have a gross effect of around 1.5 billion euros on EBIT by 2026. Chief Financial Officer Till Streichert emphasizes that the focus remains on generating cash flow and creating value for shareholders. Modernizing the fleet is another key point of the strategic plan.

Lufthansa Technik and Cargo are showing solid results

Lufthansa Technik recorded stable demand for maintenance services in the third quarter of the year, resulting in an adjusted EBIT of 167 million euros. Lufthansa Cargo, on the other hand, benefited from a recovery in the air freight business with an operating profit of 38 million euros in the quarter. Both segments contribute to the group’s stable financial position.

Strengthening financial indicators

In the third quarter, the Lufthansa Group’s operating cash flow reached 635 million euros, with an adjusted free cash flow of 128 million euros. Net loan debt was reduced to 5.1 billion euros. At the same time, available liquidity rose to 11.4 billion euros, signaling a strengthening of the balance sheet.

The Lufthansa Group is a leading international airline with headquarters in Cologne. The group operates several subsidiaries and offers comprehensive passenger and freight transport services. Sustainability and efficiency are at the heart of their long-term business strategy.