Airlines

Lufthansa, positive outlook for 2026 despite tensions

The group closes 2025 with strong growth. Positive contribution of Ita Airways to group profits of EUR 90 million.

by Mara Monti

6 March 2026

3' min read

Translated by AI

Versione italiana

Key points

The situation in the Gulf remains tense but Lufthansa raises
Better-than-expected 2025 results
Ita Airways contributed EUR 90 million to profits
confirmed interest in Portuguese Tap Airlines
Positive outlook despite Gulf tensions
The trend of new aircraft deliveries is improving

3' min read

Translated by AI

Versione italiana

The Gulf crisis that began with the start of the conflict in the Middle East is creating uncertainty in the transport sector due to fears of an increase in the price of oil and consequently of aviation kerosene. This was admitted by the German airline Lufthansa, one of the first European carriers to publish its financial results for 2025 in the midst of the crisis.

The situation in the Gulf remains tense but Lufthansa is relaunching

However, the difficulties of the Gulf companies, which have so far taken traffic away from European carriers by exploiting the Middle East hub for long-haul connections, has convinced Lufthansa to relaunch by announcing new connections on routes to and from Asia and Africa, such as Singapore, India, China and South Africa. Despite the tensions of these days, the group expects profits for 2026 to be 'significantly higher' than last year with an increase in sales.

The situation remains tense in the Gulf area: CEO Carsten Spohr said that a flight bound for Riyadh had been diverted and landed in Cairo for security reasons. The same had happened to Air France: a flight pre-commissioned by the authorities in Paris for the repatriation of compatriots from the United Arab Emirates was forced to turn back due to the launch of missiles in the area.

Better-than-expected 2025 results

Results for the financial year 2025 were better than expected supported by tighter financial management and fleet turnover that helped the airline manage costs and maximise profits. European airlines, including Lufthansa, benefited from slightly lower fuel costs in 2025, boosting earnings as passenger demand remained strong. The contribution of this item to the 2026 results is more uncertain.

'Last year we managed to significantly increase the group's operating profit and achieved the highest turnover in our history. Our results demonstrate the group's resilience and stability,' CEO Carsten Spohr said in a note.

In detail, Lufthansa recorded an adjusted operating profit of EUR 2 billion, up from the adjusted operating profit of EUR 1.6 billion recorded in 2024 (+19%). The German airline group also reported an operating margin of 4.9%, up from 4.4% in 2024.

Ita Airways contributed EUR 90 million to profits

The turnover of the group, which includes besides Lufthansa Airlines, Swiss, Austrian Ailines and Brussels Airlines, grew by 5% to EUR 39.6 billion with 135 million passengers carried (+3%), but still 7.1% below pre-Cvid levels. Ita Airways' contribution to group profits will increase to EUR 90 million in 2025. Responding to a question about the next step of increasing the share to 90 per cent from the current 41 per cent in the Italian airline, the ceo said that 'a decision has not been made yet, but we are working on it'.

confirmed interest in Portuguese Tap Airlines

Meanwhile, the German carrier is preparing for another dossier, that on the Portuguese company Tap Airways. Spohr has confirmed his interest in the carrier, believing it to be 'strategically interesting, but we will only pursue it if we create a profit for our shareholders as well,' adding that at the moment there has been no contact with the Portuguese government. The Brazilian market presence would increase the German carrier's presence in an area South America is always of interest to Germans. With Ita Airways already having connections to Sao Paulo, Rio de Janeiro and Buenos Aires, the presence would be strengthened.

Positive outlook despite Gulf tensions

Lufthansa Airlines' financial position improves, with the company forecasting a cumulative effect on gross revenue of around EUR 1.5 billion this year, rising to EUR 2.5 billion by 2028. Passengers carried by the group's leading carrier were 65.7 million in 2025, up 1.9 per cent but still 9.3 per cent below pre-Covid levels.

Lufthansa wants to restore operating margins to 8 per cent to 10 per cent between 2028 and 2030 from 4.4 per cent in 2024, but strikes, such as the most recent one on 12 February, have made it difficult for the airline to mitigate the loss of earnings.

The trend of new aircraft deliveries is improving

The modernisation of the group's fleet is continuing with deliveries accelerating at a weekly pace as in the case of the Boeing 787 for long-haul: by the end of the year Lufthansa expects to have a fleet with 30% new aircraft. Short-haul flights, on the other hand, are being transferred to the group's low-cost airlines such as Discover and Lufthansa City Airlines, where crew costs are up to 40 per cent lower than at the national airline.

The carrier said that the outlook for 2026 is uncertain due to geopolitical instability, but predicted a 4% growth in capacity, along with increased revenues and profit margins.

'The war in the Middle East shows once again how exposed air traffic is and how vulnerable it remains,' Spohr said.