“Geopolitical crises and macroeconomic uncertainties, particularly commodity price and exchange-rate volatility, are affecting the accuracy of forecasts for the rest of the year,” Lufthansa said in a statement on Thursday.
The shares fluctuated, falling as much as 1.8% in Frankfurt. They were little changed as of midmorning, and have gained more than 20% this year.Results in the second quarter were lifted by strong demand on transatlantic routes and lower oil prices. Adjusted earnings rose 27% to €871 million ($995 million), exceeding analyst expectations of €801 million.
Lufthansa attributed the boost to increased flight capacity, a positive contribution from Italy’s ITA Airways, and a stronger performance by its cargo division.
The results suggest the German airline group is making progress on its pledge to rebound from last year’s slump in profits and margins, which were dented by aircraft delivery delays and strike-related disruptions.
In response, Lufthansa installed two senior executives to improve operations at its key Frankfurt and Munich hubs, where peak-season delays had drawn criticism from travelers.Lufthansa has previously noted a trend of customers — particularly families traveling in economy — holding off on booking trips from Europe to the US. This may be caused by media coverage of delays at US borders after the incoming Trump administration tightened immigration controls.
Airline Earnings
The results come amid a broadly upbeat earnings season for European carriers.
Ryanair Holdings Plc reported a profit surge earlier this month, driven by strong demand and capacity constraints at rival airlines. Air France KLM said on Thursday that a revamped business and first-class product boosted earnings in the second quarter.
Lufthansa also reiterated a plan to achieve capacity growth of about 4%, alongside adjusted free cash flow at last year’s level. The company plans to invest as much as €3.3 billion, primarily in its fleet renewal.
The company’s namesake airline continued to weigh on results as it contends with high labor costs, aircraft delivery delays, and intensifying competition from Middle Eastern and Asian carriers. The group said its turnaround program remains on track, noting that it is working to meet efficiency targets.
The airline expects to be operating 10 Boeing Co. 787-9 Dreamliner aircraft by the end of the year, with the fleet expanding to 15 by the summer of 2026. This will more than double the number of planes equipped with the company’s new Lufthansa Allegris premium product, Lufthansa said.
Delivery of the jets, which have been built and are sitting in the US awaiting handover, has been held up because of certification delays of the new seats.
