‘One of the financially worst quarters’: Lufthansa explains why

Lufthansa Airlines reported one of its weakest first-half performances outside the pandemic, citing the Iran conflict, soaring fuel costs and industrial action as key drivers behind declining profitability. While the passenger airline lowered its financial outlook, Lufthansa Cargo delivered strong second-quarter growth, with revenue rising 27 percent to €1 billion and EBIT increasing 58 percent as tighter market capacity boosted freight yields. Lufthansa executives said the airline’s turnaround programme remains on track, with more than 1,200 initiatives focused on improving efficiency, reducing costs and supporting a long-term recovery. While Lufthansa Airlines reported one of its weakest second-quarter performances outside the pandemic, its cargo business delivered strong growth as geopolitical disruption reshaped global air freight markets. Lufthansa Airlines CEO Jens Ritter said the carrier’s adjusted EBIT fell to a loss of €37 million in the second quarter, compared with a €247 million profit a year earlier. Revenue remained broadly stable at €4.57 billion, but the airline was hit by soaring fuel costs following the conflict in Iran, route cancellations and industrial action in April. According to Ritter, higher kerosene prices increased fuel costs by €415 million despite hedging, while April strikes reduced earnings by a further €115 million. The airline also operated 6.5 percent fewer available seat kilometres than in the second quarter of 2025 as conflict in the Middle East forced network adjustments. In contrast, Lufthansa Group’s logistics division recorded a strong quarter. Revenues rose 27 percent year on year to €1 billion, while EBIT increased 58 percent to €116 million. “Our Q2 revenue came in at €4.570 billion, against €4.579 billion a year ago. At first glance a stability. Yet a closer look shows that our Adjusted EBIT dropped to minus €37 million, against a positive €247 million in Q2 2025. Why’s that?” wrote Lufthansa Airlines CEO Jens Ritter on LinkedIn . “The answer is a combination of the Iran conflict and the strikes in April. The Iran conflict had two direct consequences: fuel costs reached an unprecedented level. We experienced a price-driven increase of €415 million after hedging. On top of that, we had to cancel routes and flew 6.5 percent less than in the same quarter last year, which drives up unit costs. Roughly half of our costs are fixed and cannot be reduced when volume falls. The April strikes cost us an additional €115 million in earnings in a single month. Both forces hit simultaneously and the combined weight on our result was severe,” he stated. Lufthansa said the conflict in the Middle East reduced market capacity, creating favourable conditions for its cargo business. Higher freight yields, supported by reduced competitor capacity and rising fuel costs across the market, more than offset relatively modest volume growth. Cargo traffic increased 3 percent year on year to 2.4 billion revenue cargo tonne kilometres, while capacity rose 2 percent to 3.7 billion available cargo tonne kilometres. Cargo load factor improved by 0.4 percentage points to 62.9 percent. Lufthansa Airlines Chief Financial Officer Jörg Beißel agreed the carrier’s first-half performance reflected the combined impact of the Iran conflict, higher fuel costs and industrial action, despite revenue remaining broadly stable at €8.1 billion. The airline reported an adjusted EBIT loss of €480 million and an adjusted EBIT margin of minus 6 percent for the first six months of the year. Beißel said more than 1,200 measures are currently being implemented under the airline’s turnaround programme, including the rollout of the Allegris premium cabin, the “Repair First” engine maintenance strategy, the “Gate of the Future” project at Frankfurt Airport and the “New Ways” voluntary programme aimed at reshaping the company’s cost base. While acknowledging that the first-half results fell short of expectations, he said the transformation programme continued to deliver progress despite external market challenges. “This is not where we want to be. But it is a result we can explain. Several encouraging developments across the business have been overshadowed by the consequences of the Iran conflict. What gives me confidence is that our teams have not lost momentum, we continue to execute our turnaround with determination,” said Beißel. Looking ahead, Beißel said the airline remains focused on the areas it can directly influence despite continued market uncertainty. He noted that while the headwinds experienced during the first half of the year were largely beyond Lufthansa Airlines’ control, the carrier continues to make tangible progress in improving product quality, strengthening cost discipline and accelerating its transformation programme. Beißel said these efforts are helping build a stronger and more resilient airline, expressing confidence that the continued commitment of employees across the business will support a