Deutsche Lufthansa (LHA) Investor presentation summary

Strategic positioning and business overview

• Leading airline group in Europe by revenue and fleet size, with 135 million passengers in 2025 and over 100,000 employees from 160 countries.

• Multi-hub, multi-brand model provides strong market presence and flexibility across Europe, with a 41% stake in ITA Airways and plans to increase to 90% in 2026.

• Four strategic pillars: network airlines, point-to-point airlines, logistics, and MRO, each contributing to diversified revenue and margin streams.

• Fleet modernization and simplification drive efficiency, with a focus on next-generation aircraft and harmonized operations.

• Customer experience enhanced through new onboard products like Allegris, boosting satisfaction and monetization.

Financial performance and outlook

• Q1 2026 adjusted EBIT rose by €110m year-over-year, with revenues up 8% and net income loss reduced to €665m.

• Network airlines saw strong demand in March, with RASK up 3.3% and improved booking intakes despite operational disruptions.

• Point-to-point airlines achieved robust revenue growth and higher yields, though irregularity impacts increased costs.

• Cargo and MRO segments delivered earnings growth, with Lufthansa Cargo benefiting from capacity shortages and Lufthansa Technik expanding globally.

• Adjusted free cash flow in Q1 2026 exceeded prior year by €545m, supporting a reduction in net financial debt.

Operational initiatives and transformation

• Turnaround measures at Lufthansa Airlines target €1.5bn EBIT impact by 2026, focusing on premium offerings, cost reduction, and productivity.

• Fleet renewal and structural transformation aim for high-single-digit EBIT margin by 2028, with over 700 initiatives underway.

• ITA Airways integration progressing, with 20-30% of synergies captured by end of 2025 and full consolidation expected in 2027.

• Eurowings and Lufthansa Cargo maintain leading positions in their markets, with Eurowings expanding leisure offerings and Cargo targeting top 3 global ranking.

• Lufthansa Technik remains the global leader in MRO, generating most revenue from long-term contracts and third-party customers.