Deutsche Lufthansa (LHA) investor relations material

Executive summary

• 2025 marked a transition year with operational improvements, reduced irregularity costs by 43% (€362m), and record revenues of €39.6bn, up 5.4% year-over-year.

• Adjusted EBIT rose by €350m to €2.0bn (4.9% margin, +0.5pts), up 19% year-over-year, but net income was flat due to a one-off tax effect.

• Passenger demand grew, especially in North America, Africa, and Asia, with ASK up 3.8% and load factor stable at 83.2%.

• Cost discipline, digitalization, and operational improvements supported margin expansion.

• Dividend increased by 10% to €0.33/share (4% yield, 30% payout ratio).

Financial highlights

• Revenue: €39.6bn (+5.4% YoY); Adjusted EBIT: €2.0bn (+19% YoY); Adjusted EBIT margin: 4.9% (+0.5pts).

• Adjusted free cash flow: €1.19bn (+41%); Operating cash flow: €4.04bn; Net CapEx: €2.5bn.

• Liquidity: €10.7bn (above €8–10bn target); Net debt: €6.4bn; Leverage ratio: 1.8x.

• Adjusted ROCE: 10.3% (+0.7pts).

• Net income: €1.34bn (-3%).

Outlook and guidance

• 2026 Adjusted EBIT expected significantly above 2025, despite increased uncertainty from Middle East events.

• Capacity to grow ~4% (mid/high-single-digit intercontinental, flat continental).

• Net CapEx planned at €2.9bn for up to 45 new aircraft; Adjusted free cash flow expected at €0.9bn.

• Targeting 8–10% Adjusted EBIT margin and 15–20% ROCE by 2028–2030.

• Dividend payout policy of 20–40% of net income.