Lufthansa Group cuts winter losses
April 30, 2025
The Lufthansa Group has trimmed its first-quarter operating loss and reaffirmed its positive forecast for 2025, after strong demand across its passenger and cargo businesses and a marked improvement in operational performance during the start of the year.
The group posted an adjusted EBIT loss of €722 million for the first three months of the year, a €127 million improvement compared to the same period in 2024.
Revenue rose 10% year-on-year to €8.1 billion, with the company attributing the gains to higher yields, robust transatlantic traffic, and strong contributions from Lufthansa Technik and Lufthansa Cargo.
The group is standing by its full-year target of significantly exceeding last year’s adjusted EBIT of €1.645 billion.
“Global demand for air travel continues to grow. Despite all the geopolitical uncertainties, we therefore remain on course for growth, are optimistic about the summer, and are sticking to our positive outlook for 2025,” said CEO Carsten Spohr.
“In the first quarter, our airlines were able to sell their expanded capacity at higher yields in the market. Our revenue improved by ten percent compared with the previous year, with Lufthansa Cargo and Lufthansa Technik also contributing with their strong performance.
“On the North Atlantic, the number of guests rose by more than seven percent in the first quarter, with higher load factors and better yields. Demand continues to be robust for the second quarter. I am pleased that our guests are benefiting from significantly improved punctuality and stability, particularly with our core brand Lufthansa.
“Operationally, we had our best start to the year in ten years. I would therefore like to express my special thanks to all crew members, technicians, and employees at the airports and in the operations centers of our airlines, who contributed to this success with their great commitment.”
Passenger airlines in the group saw revenue climb to €5.9 billion, although their combined adjusted EBIT slipped slightly to a €934 million loss due to cost pressures and the timing shift of Easter travel from Q1 in 2024 to Q2 this year.
Despite this, average yields rose marginally and unit revenues were up 2.7% year-on-year, supported by fewer disruption-related payouts.
Operational reliability was a bright spot, with Lufthansa achieving its most punctual first quarter in a decade. Direct compensation costs halved to €47 million, down from €98 million, and Frankfurt Airport required 20,000 fewer hotel stays for delayed passengers compared to the same period last year.
On the North Atlantic, passenger numbers rose by more than 7% and average revenues were up nearly 7%. Load factors increased year-on-year and demand from the US market remained strong, with Lufthansa carrying a quarter more passengers from the US to Europe in March than the previous year.
Lufthansa Technik posted record first-quarter results, with adjusted EBIT jumping 49% to €161 million as revenue reached €2 billion. Lufthansa Cargo also delivered a sharp turnaround, reporting an €84 million year-on-year swing to a €62 million adjusted EBIT, aided by increased freighter capacity and cost discipline.
Free cash flow more than doubled to €835 million, while net debt dropped to €5.3 billion. Total liquidity improved to €11.4 billion. CFO Till Streichert said the airline is staying alert to market risks, while benefiting from favourable conditions including fuel and currency tailwinds.
“We are in a period of high volatility. In this environment, it is good news that we are making progress as planned on issues within our control, such as our turnaround program at Lufthansa Airlines. At the same time, we are keeping an eye on market risks. We are well prepared to respond should these materialize. However, it is not just about risks, but also about positive factors that are already supporting our earnings performance today, such as favorable fuel prices and exchange rates. These can help to offset the financial effects of any changes in demand. Overall, we therefore remain confident that we will be able to achieve a full-year result significantly above the previous year’s level,” said Streichert.
Looking ahead, the group said it expects a buoyant summer travel season, particularly to Mediterranean destinations and across long-haul markets including North America. However, ongoing economic and geopolitical uncertainties continue to cloud the longer-term view, and Lufthansa has established a task force to monitor developments and adapt quickly if demand softens.
