Lufthansa Group reports strong global demand despite ‘geopolitical crises’ 

Lufthansa Group has cautioned that geopolitical crises, macroeconomic uncertainties and late bookings are clouding full-year forecasts.

 

However, the parent company of carriers including Lufthansa, Austrian Airlines, Brussels Airlines and Swiss projected that operating profits will be “significantly higher” than last year’s total of €1.6 billion with capacity growth of around four per cent despite ongoing global uncertainties.

 

Issuing second quarter results, the company said: “Global demand for air travel remains strong. 

 

“However, geopolitical crises and macroeconomic uncertainties, particularly commodity price and exchange rate volatility, are affecting the accuracy of forecasts for the rest of the year. 

 

“In addition, the tendency of many travellers to book at shorter notice is limiting visibility for the second half of the year.”

 

Overall passenger numbers rose by two per cent in the first half of the year to more than 61 million, including 37 million in the second quarter.

 

The operating profit rose by a quarter year-on-year to €871 million as revenue grew by three per cent to €10.3 billion.

 

The adjusted first half loss was reduced to €244 million from €337 in the same period in 2024 helped by lower fuel costs, higher income from investments, and the absence of financial strike-related expenses in the previous year. 

 

“In contrast to the first half of 2024, network stability also improved significantly, resulting in a €106 million reduction in financial expenses due to flight irregularities,” the group reported.

 

The passenger airlines’ revenue per available seat kilometre  declined slightly by 0.9% in the second quarter after adjusting for currency effects. 

 

“This was primarily due to lower average prices in the European business as a result of intensifying competition,” the results statement said.

 

“In contrast, average revenues from intercontinental traffic remained stable despite a market-wide expansion of capacity.”

 

The integration of Italian carrier ITA Airways, in which Lufthansa Group currently holds a 41% stake, is continuing to progress. 

 

“The benefits for customers are already clearly noticeable,” the group said. “Since the beginning of July, the airlines of the Lufthansa Group and ITA Airways have harmonised the benefits for their respective status customers, such as mutual lounge access, priority boarding, and conditions for additional baggage.

 

“Also since July, flights from Lufthansa, Swiss, Austrian Airlines, and Brussels Airlines can be combined with long-haul flights from ITA Airways in a single booking.

This has been possible for short- and medium-haul flights since March.”

 

Chief executive Carsten Spohr said: "The Lufthansa Group remains on course. Although the second quarter was again marked by geopolitical crises and economic uncertainties, we are today confirming our positive outlook for the full year. 

 

“However, 2025 will remain a year of transformation for us, as delays in aircraft deliveries, certifications, and engine overhauls continue. 

 

“The disproportionate burden on European airlines due to unilateral EU regulations also continues to put us at a disadvantage in global competition.

 

“In this challenging environment, we were able to increase our operating result by almost a third in the second quarter and double the Lufthansa Group result. 

 

“The basis for this economic success is and remains the regained operational stability of our airlines.

 

“Our core brand achieved its best stability and punctuality figures since 2016. This not only significantly improved customer satisfaction but also had a noticeable impact on earnings due to lower compensation payments.”