Lufthansa Profit Plunges
Lufthansa Reports Sharp Q2 Profit Drop and Half-Year Loss on Surging Costs
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Key Points
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Lufthansa's Q2 network yields remained strong, with overall RASK up 6.5% and Asia Pacific yields up 13.3% alongside a 6.7% premium yield increase; Eurowings saw about a 9.4% rise in yields.
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Strikes weighed on results with six cockpit crew days in April contributing roughly €150 million in losses, a factor compounded by the sudden shutdown of Lufthansa CityLine.
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Passenger activity cooled despite higher yields: Q2 capacity fell about 3.3% (due in part to suspended Middle East routes) and total passengers were down around 1% to 60.7 million.
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Cargo and maintenance segments offered some relief, with Lufthansa Cargo delivering a 27% rise in yield and Lufthansa Technik posting improved profits.
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The 2026 outlook was further revised: adjusted EBIT guidance now in a range of €1.7–2.2 billion, and market reaction was negative with shares falling about 8% in early trading as fuel-cost volatility remains a core concern (fuel costs for 2026 estimated around €8.66 billion).
Lufthansa's adjusted operating profit collapsed 56% in the second quarter, falling to €383 million as surging jet fuel costs and crew strikes hammered the German airline group. Shares fell nearly 11% by midday, according to MarketScreener, making it one of the worst trading days for the stock in recent memory.
For the first half of 2025, Lufthansa posted a net loss of €229 million. Revenue rose 8% to €11.1 billion, but that gain was wiped out by an estimated €750 million surge in fuel costs and €150–€200 million in losses tied to strikes.
Fuel Costs and Strikes Crushed Q2 Profits
Higher jet fuel prices were the single biggest drag on Lufthansa's results. Fuel costs for 2026 are now estimated at around €8.66 billion, according to NDTV Profit. The Iran conflict has kept oil prices volatile, making it nearly impossible for the airline to plan costs with any confidence.
Cockpit crew strikes also bit hard. Six days of strike action by pilots in April alone cost Lufthansa roughly €150 million. The sudden shutdown of regional carrier Lufthansa CityLine added more pain on top, cutting capacity just as the busy summer season approached.
Strong Yields Could Not Cover the Damage
Lufthansa did manage to charge passengers more per seat. Overall revenue per available seat kilometer, a measure of pricing power, rose 6.5%. Asia Pacific yields jumped 13.3%, and premium cabin yields climbed 6.7%. Budget arm Eurowings posted a 9.4% yield increase.
But those gains were not enough. Passenger capacity fell about 3.3%, partly because Lufthansa suspended routes to the Middle East. Total passengers dropped roughly 1% to 60.7 million. Higher prices helped, but fewer seats and soaring costs left a large hole in profits.
Cargo and Maintenance Offered a Rare Bright Spot
Not every part of the business struggled. Lufthansa Cargo delivered a 27% rise in yield, driven by strong air freight demand. Lufthansa Technik, the group's maintenance division, also posted improved profits. These two units provided some cushion against the losses piling up in the passenger business.
Lufthansa Slashes 2026 Outlook, Blaming Iran War Fears
Lufthansa now expects 2026 adjusted earnings before interest and tax to land between €1.7 billion and €2.2 billion. That is a steep cut from earlier hopes to clearly beat the prior year's €1.96 billion. The airline blamed fuel price swings tied to the ongoing Iran conflict and broader geopolitical uncertainty, according to Head Topics.
Markets reacted fast and hard. Shares dropped about 8% in early trading before extending losses to nearly 11% by midday, as NDTV Profit reported. Investors worry that last-minute booking trends are making it harder for airlines to pass rising costs on to travelers through higher fares.
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