Deutsche Lufthansa (ETR:LHA) used its 73rd annual general meeting to highlight a stronger 2025 financial performance, a proposed dividend increase, continued restructuring at its core airline and the accelerated integration of ITA Airways.
Speaking to shareholders, Carsten Spohr said the Lufthansa Group generated revenue of €39.6 billion in 2025, bringing it closer than ever to the €40 billion mark. Adjusted EBIT rose 20% to €2 billion, corresponding to a 5% margin. Spohr said all passenger airlines were profitable and accounted for more than half of the group’s operating profit.
Core Lufthansa Airlines Remains Turnaround Focus
Spohr described 2025 as a “transformation year” and said the turnaround program at Lufthansa Airlines remains the group’s most important initiative. He said the airline made “significant progress” in operational performance, with punctuality and reliability metrics reaching levels last achieved 10 years ago.
However, Spohr said Lufthansa Airlines’ financial performance remained modest. The airline improved year over year but reported adjusted EBIT of €140 million and a margin of 0.9%. The turnaround program is expected to deliver an earnings impact of €1.5 billion this year and around €2.5 billion by the end of 2028.
Spohr outlined three main levers for the turnaround:
- Fleet and product modernization, including new aircraft deliveries and the rollout of the Allegris premium cabin.
- Accelerated growth at Lufthansa City Airlines and Discover Airlines.
- Hundreds of efficiency, savings and revenue measures across the business.
Lufthansa Airlines took delivery of nine of 23 new aircraft last year. Spohr said fleet renewal is accelerating, with 44 new group aircraft deliveries expected this year, including 20 long-haul jets for Lufthansa Airlines equipped with Allegris. He said customer satisfaction scores improved by more than a quarter last year and continued to improve in the first quarter.
Group Airlines and Divisions Post Mixed Results
Spohr said Swiss remained the group’s most profitable passenger airline, with adjusted EBIT of €600 million, though below the prior year. Austrian Airlines improved slightly and contributed €81 million. Brussels Airlines reported adjusted EBIT of €28 million, significantly below the previous year, while Eurowings generated adjusted EBIT of €132 million and was recognized as the best airline in Europe in its segment, according to Spohr.
Lufthansa Cargo improved its full-year result by 30% to €324 million. Lufthansa Technik nearly matched its prior-year record, posting an operating result of €603 million. Spohr said ITA Airways contributed €90 million to group success, reported in income from equity investments because Lufthansa currently holds a 41% minority stake.
ITA Airways Integration Accelerates
Lufthansa plans to exercise its option in June to acquire an additional 49% of ITA Airways. Spohr said that would allow ITA to be organizationally and financially fully integrated into Lufthansa Group as of 2027.
He said Lufthansa had promised shareholders the fastest airline integration in its history and had exceeded that goal. Customer-facing interfaces are already integrated, except for North Atlantic flights, where regulatory approval remains pending. Spohr cited unified booking, sales and fare systems, Miles & More participation, Star Alliance membership and access to Lufthansa’s premium lounge network as examples of the integration already completed.
He also said Lufthansa Cargo has been marketing ITA Airways cargo capacity since last year, equivalent to the additional capacity of three Boeing 777 freighters.
Long-Term Targets and Germany Cost Concerns
Spohr reiterated Lufthansa’s medium-term financial targets, saying the group aims by 2030 at the latest to raise its margin to 8% to 10%, increase return on capital employed to 15% to 20%, and generate at least €2.5 billion in free cash flow per year.
He said Lufthansa Group has become Europe’s largest airline group, with €40 billion in revenue and a fleet of 840 aircraft, and described internationalization as central to its strategy. Less than 20% of revenue now originates in Germany, and less than half of network airline aircraft are based at Frankfurt and Munich, he said.
At the same time, Spohr criticized Germany’s aviation costs, saying the group is disproportionately affected by “excessively high costs” at its German locations. He said Lufthansa would continue urging policymakers to provide tangible relief from what he described as major locational disadvantages.
Supervisory Board Changes
Karl-Ludwig Kley, Chairman of the Supervisory Board, also addressed shareholders on his final day in the role. He said the supervisory board focused on political and regulatory developments, competitive pressures, the modernization of the fleet, internationalization, Lufthansa Technik locations, the Lufthansa Airlines turnaround and IT and digitalization strategy.
Kley said the terms of Karl-Ludwig Kley, Wolfgang Nickl and Carsten Knobel would end with the AGM. The supervisory board proposed reelecting Kley and electing Wolfgang Nickl and Johannes Teyssen for three-year terms. Teyssen, identified as the designated chairman of the supervisory board, asked shareholders for their support and said Lufthansa must earn its cost of capital while competing globally and maintaining customer trust.
The meeting agenda included votes on the dividend, approval of actions by the executive and supervisory boards, the 2025 remuneration report, supervisory board elections, capital authorizations and the reelection of EY as auditor and group auditor. Kley said 615,588,821 shares were represented, equal to 51.33% of share capital.
About Deutsche Lufthansa (ETR:LHA)
Deutsche Lufthansa AG operates as an aviation company worldwide. It operates in three segments: Passenger Airlines; Logistics; and Maintenance, Repair and Overhaul Services (MRO). The Passenger Airlines segment offers products and services to passengers of Lufthansa Airlines, SWISS, Austrian Airlines, Brussels Airlines, and Eurowings. Its Logistics segment offers airfreight container management, urgent shipments, and customs clearance services; and e-commerce solutions. The MRO segment provides maintenance, repair, and overhaul services for civil commercial aircraft serving original equipment manufacturers, aircraft leasing companies, operators of VIP jets, government, armed forces, and airlines.
