Deutsche Lufthansa (LHA) Investor presentation summary

Strategic positioning and business model

• 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 flexibility, resilience, and scalable growth across key European markets.

• Value creation driven by four strategic pillars: network airlines, point-to-point airlines, logistics, and MRO, with ongoing One Group transformation.

• Fleet modernization and simplification underway, targeting 6-9 aircraft types by 2030 and increasing next-gen aircraft share to 58%.

• ITA Airways integration progressing, with majority stake to be acquired in June 2026 and full consolidation expected by Q1 2027.

Financial performance and outlook

• Q1 2026 adjusted EBIT improved by €110m year-over-year, with revenues up 8% to €8.7bn and net income loss reduced to -€485m.

• Network airlines saw strong demand in March, with RASK up 3.3% and premium offerings driving higher ancillary revenues.

• Point-to-point airlines achieved robust revenue growth (+18%) despite higher costs from irregularities and maintenance.

• 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

• Fleet renewal and structural transformation are key to the turnaround, targeting €1.5bn EBIT impact by 2026 and €2.5bn by 2028.

• Allegris onboard product rollout exceeds expectations, boosting customer satisfaction and unit revenues.

• Cost reduction programs, productivity improvements, and digitalization drive operational efficiency.

• Synergies from ITA integration and group-wide standardization expected to deliver significant value.

• Focus on expanding leisure and cargo segments, with Eurowings and Lufthansa Cargo positioned for growth.