Lufthansa records profit surge, stock prices see volatile movement
Lufthansa, Germany's flagship airline, has presented its second-quarter results, surpassing expectations with a significant improvement in profitability. The airline's net profit surged 116 percent to 1.01 billion euros, while the adjusted EBIT rose 27 percent to 871 million euros, on a 3 percent revenue increase to 10.3 billion euros.
The strong performance was driven by a combination of factors, including higher traffic and capacity, robust demand – particularly across the North Atlantic – and low oil prices. Despite a slight decline in passenger load factor, Lufthansa's core brand achieved its best punctuality and operational stability since 2016, positively impacting customer satisfaction and reducing compensation costs.
Looking ahead, Lufthansa remains optimistic about the current business year. The airline anticipates a four percent increase in offered seat-kilometers compared to 2024, with a key focus on continuing the turnaround program that strengthens operational stability. The management has confirmed the forecast to significantly exceed the adjusted operating profit of the previous year of 1.6 billion euros.
Investors are advised to exercise patience in the short term due to high ticket demand, falling fuel costs, and operational progress. The airline is also planning to operate ten new Boeing 787 aircraft by the end of 2025, equipped with the Allegris product. These new, fuel-efficient aircraft will replace older models as part of Lufthansa's fleet modernization efforts.
However, the fleet modernization is not without challenges. Lufthansa's CEO, Carsten Spohr, noted ongoing difficulties in aircraft deliveries, certifications, and engine overhauls as part of the 2025 transformation year. These delays highlight that fleet modernization is ongoing but currently subject to logistical challenges.
Despite these challenges, all airlines in the group – including Lufthansa, Swiss, Austrian Airlines, Brussels Airlines, and Ita Airways – reported profits for the quarter. Positive currency effects from the US dollar and a tax refund also contributed to the net profit.
For those interested in updates on exciting companies and the stock market, readers can subscribe to the DER AKTIONÄR DAILY newsletter. As a reminder, the publisher Börsenmedien AG's management and majority shareholder, Mr. Bernd Förtsch, has positions in financial instruments related to the publication.
In summary, Lufthansa's Q2 2025 demonstrates strong profitability growth, a confident full-year outlook focused on revenue and operational improvements, and ongoing fleet modernization efforts complicated by delivery and certification delays.
Business sectors such as finance, investing, and Lufthansa's airline industry have witnessed noteworthy progress, with Lufthansa's Q2 2025 results showcasing a surge in net profit and adjusted EBIT, driven by factors like higher traffic, robust demand, and low oil prices. Looking forward, investors are urged to show patience in the short term due to factors like high ticket demand, falling fuel costs, and ongoing fleet modernization efforts, which, although complicated by logistical challenges, aim to boost efficiency and profitability.
