Deutsche Lufthansa (LHA) CMD 2025 summary

Strategic direction and transformation

• Transition to a highly integrated, multi-hub, multi-brand airline group, leveraging group-wide synergies and local market strengths for premiumization and operational excellence.

• Ongoing integration of ITA Airways to expand network reach and market presence, with rapid synergy realization and a focus on maintaining local brand value.

• Expansion in leisure, cargo, and MRO segments to diversify revenue streams and enhance resilience.

• Continued focus on digital transformation, AI-driven decision-making, and customer-centric innovation to enhance operational efficiency and revenue generation.

• Commitment to long-term value creation through disciplined capital allocation, fleet modernization, and investment in premium products and digital tools.

Financial guidance and targets

• Midterm financial targets for 2028–2030: adjusted EBIT margin of 8–10%, adjusted ROCE of 15–20%, and over €2.5 billion adjusted free cash flow per year.

• Dividend policy maintained at 20–40% of net income, with a focus on sustainable and growing shareholder returns.

• Targeting a solid investment-grade credit rating, prudent liquidity of €8–10 billion, and a balanced approach to CapEx and leasing for fleet flexibility.

• Rightsizing and cost transformation expected to deliver €0.3 billion EBIT uplift per year by 2030.

• ITA integration expected to deliver 10–15% of ITA 2024 revenue in synergies after full consolidation.

Fleet, productivity, and sustainability

• Over 230 new aircraft to be phased in by 2030, increasing next-gen widebody share to 65% and improving asset productivity by 10–15%.

• Fleet harmonization and simplification to reduce operational complexity and costs.

• Sustainability targets include a 30.6% reduction in CO2 emissions per RTK by 2030 and net zero by 2050.

• Modernization expected to reduce fuel consumption by up to 30% per aircraft and lower MRO costs by 20–30%.

• Group-wide admin efficiency program to reduce non-operational FTEs by 20% (4,000 roles) by 2030, with €300 million run-rate savings.