Lufthansa increases operating profit by 27% in Q2

German airline group Lufthansa ended the second quarter with better-than-expected results, thanks to the weak dollar, falling fuel prices, and while reconfirming its positive guidance for the year, it warned that an uncertain global environment and last-minute bookings make the outlook uncertain. Although demand remains strong for the summer months, the unknown factor of transatlantic flights remains. Operating profit rose 27% in the second quarter to EUR 871 million compared to EUR 659 million in the same period last year, which was higher than analysts' forecasts. Net profit also more than doubled in the second quarter to EUR 1.012 billion from EUR 469 million last year.

The company said that the improvement in profits was mainly due to the expansion of the flight schedule, the cargo sector and Lufthansa Technik, which reported record results, but also to the positive effects of the investment in Italy's ITA Airways, which contributed EUR 91 million to the Lufthansa group's quarterly results for the first time for lease back operations and currency, according to cfo Till Streichert during a call. The integration between the two groups continues to grow on both the passenger and cargo side with all group brands (SWISS, Austrian Airlines, Brussels). "It is encouraging that our investment in Ita Airways is already contributing to the financial success of the group," said Carsten Spohr, president and ceo of Lufthansa in a call with journalists, adding that "we have until June 2026 to decide whether to step up in Ita Airways beyond the current 41 per cent by exercising the call option".

Lufthansa may not stop at Ita Airways. The CEO has, in fact, confirmed interest in the privatisation of the Portuguese Tap Airways and in looking at the Spanish Air Europe, while Air France-KLM has said that it has abandoned the project due to its failure to reach an agreement with its reference shareholder, Globalia. Turkish Airlines is also interested in the Spanish company. In general on the company Spohr pointed out that 'Our core brand has achieved the best stability and punctuality figures since 2016'. Lufthansa group increased turnover by 3% in the second quarter to EUR 10.322 billion from EUR 10.007 in the same period last year with 37.1 million passengers carried. Turnover of the Lufthansa Airlines group's main brand was also up 4% with €8 billion and 30.3 million passengers carried, but with an operating loss of €307 million, an improvement on the -€427 million in the first half of last year. Austrian Airlines, Brussels and Eurowings also made a loss in the first half of the year. Results for Swiss were positive but down.

Demand in the US remained strong despite the weak dollar. The major European airlines are cautiously observing a possible decline in transatlantic travel, as European travellers have given up booking to this destination this year. As in the case of Air France-KLM worried about the effects of US President Donald Trump's tariff war. In the quarter, the Franco-Dutch carrier reported an increase in operating profit to 736 million and 6.2% year-on-year turnover, with 27.3 million passengers carried.